Family trusts are important for protecting family assets and heirlooms and is crucial to creating intergenerational wealth. If you really want to protect your wealth you should consider setting up a family trust, whether as part of your Wealth Succession Plan or on a standalone basis. There are many benefits to a family trust but the most important one is that it allows you to control how you pass on your wealth to your family and allows you to create a tailor-made solution for your own family. There are different types of trusts and they all depend on what you are trying to achieve.
Some of the benefits of different types of family trusts include:
- Discretionary Trusts: you can use this type of trust to provide for children or your children and grandchildren in such a way that the trustees have discretion and control over who gets what share and when. This gives ultimate flexibility and also protects the trust assets from any of the beneficiaries or their creditors.
- Interest in Possession Trusts: you could use this type of trust to provide income for your adult children whilst protecting the capital for your grandchildren.
- Protective Trusts: you might be concerned about your children’s marriage. You can use this type of trust to protect both the income and the capital of the trust funds or assets from their divorce or even their creditors if their financial situation is uncertain.
- Trusts For People With Disability: you may wish to provide for a relative with a serious disability in such a way that the means-tested benefits the person is receiving will not be affected by your gift.
- Life Policy Trusts: if you have life policies they can be written in trust so that the proceeds do not form part of your estate for inheritance tax.
- Personal Injury Trusts: If you are expecting to receive a personal injury award you can set up a personal injury trust so that your disability benefits are not affected by the award.
- Declarations of Trusts: You should have one of these whenever you own property jointly with others in unequal shares. This will allow you to say who owns what share in the property and how the property should be dealt with in the event of death of one of the co-owners, or on sale or other event such as separation.
- Pension Policy Spousal Bypass Trusts: This is a useful way of providing for your spouse to enjoy any death in service benefits that you may be entitled to but without the proceeds forming part of their estate.
- Charitable Trusts: you might want to raise funds for a particular cause, or to donate money to set up a new charity. We can set up a charitable trust for that purpose. This will ensure that the charity receives all the tax breaks that are available so that the money you raise or donate can go to the charity’s causes. You can also take advantage of the income tax reliefs.
There are other types of trusts for other purposes but that’s why Remi is there to guide you. She will help you choose the type of trust that best achieves what you want but in a tax-effective way.
If you’re wondering whether a family trust will be helpful for your estate, why don’t you book a FREE 30-minute strategy session with Remi Aiyela so that she can understand your own personal circumstances. By booking your strategy session now, you can start taking the first steps towards setting up your family trust, either on a stand-alone basis or as part of your Wealth Succession Plan.
With the Strategy Session, Remi is ready to share lots of information and tips so you start saving inheritance tax immediately, plus, if you choose the Wealth Succession Plan, you will get an exclusive offer, where you will be given the opportunity to lock in nearly 65% of discounts from her usual fees.
There’s absolutely nothing to lose and everything to gain.