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 estate planning 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.
- Life Interest 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 protecting funds you put into trust from the whims of irresponsible beneficiaries. This trust protects the income and capital from being squandered by financially irresponsible beneficiaries.
- Trusts For Vulnerable People: 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.
- Declaration of Bare Trust: 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.
- 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. And there are plenty of
If you’re wondering whether a family trust will be helpful for your estate, why don’t you book a FREE 30-minute consultation with Remi Aiyela so that she can understand your own personal situation? By booking your consultation now, you can start taking the first steps towards setting up your family trust.