Trusts
Setting up a trust is a great way to retain some control of your assets or money while passing them on to benefit others, such as your children or grandchildren. This ensures that they receive what they need at the right time and are capable of handling the responsibility. Trusts can also help reduce the tax burden on your family after your passing. Trusts can either be set up in your will to take effect on your death, or can be created during your lifetime.
Who needs to put a trust in place?
Trusts can also be beneficial for people who want to hold assets for children or young adults until they reach a certain age or demonstrate enough responsibility. It’s a complex legal structure, and can also be beneficial in other situations, such as:
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If you have a family member who is disabled or unable to manage their finances well, creating a trust can ensure that they are cared for financially.
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In some cases, a trust can also help minimise inheritance tax for your beneficiaries and protect your assets from creditors or claims in situations like divorce.
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If you have specific requirements for how your assets are to be distributed over time or with certain conditions, a trust offers more flexibility than a will.
What are the benefits of trusts?
Overall, the purpose of setting up a trust is to give you more control over your assets. Having a trust gives you greater control over how your assets are managed on an ongoing basis. For example, beneficiaries may only receive their inheritance upon meeting certain conditions, such as age requirements or educational obligations. This can give you a sense of security when leaving assets to young beneficiaries or individuals who may lack the knowledge or maturity to manage their finances.
If you have questions about whether a trust is right for you or the process of setting one up, we’re here to help. We have a lot of experience in setting up and managing trusts for clients, so get in touch for a chat to see how we can help you.
We can also advise you in relation to existing trusts that have been set up and can help resolve issues that may have arisen with trusts.
If you are appointed as a trustee of a trust, we can assist you with the ongoing management of the trust, including ensuring you comply with regulatory and tax obligations.
