Are You Getting the Maximum Benefits from your Trust?
TRUSTS provide significant benefits and can be central entities in family structures which provide the financial foundation for families and future generations.
Some of the benefits offered by a trust include:
Assets held in a trust are better protected from creditors, which is a very effective way of managing risk for those involved in business or specific transactions that carry risk.
A Trust can protect chidlren and beneficiaries from making unwise investments by providing more structure, and if desired a professional trustee such as your lawyer or accountant, or other trusted advisor. This lowers the risk of making bad investments or falling prey to financial predators or scams.
A Will can be challenged under the Family Protection Act. A Trust Deed cannot be challenged under this Act.
Using a trust to record and track distributions to children, or beneficiaries is a great way of keeping a clear summary of the help provided to each family member that can be used as a way of ensuring fairness and equality.The use of modern Cloud based software makes it quick and easy to do this.
The Property (Relationships) Act is a complex piece of legislation that can be behind unpredictable and undesired outcomes in the case of relationship dissolutions. Assets transferred into a trust with proper planning are less likely to be subject to a relationship property claim at the end of a relationship. In the case of parents passing on wealth or property to children, greater protection is given when this is done using a trust. The children can receive the benefit of the assets that do not form part of their personal property and as a result less likely to be the subject of a relationship property claim.
Trusts provide the opportunity to distribute passive income to beneficiaries and family members who have lower taxation rates, which can avoid the need to pay taxation at the highest marginal rate in some cases.
Many elderly people are missing out on residential care support, as even modest levels of assets mean that personal resources need to be exhausted before they are eligible for assistance. By placing appreciating assets such as property into a trust early, or at the time of purchase, well-structured forward looking people may be eligible for support in the later stages of life.
Most people will derive some form of benefit from having a trust and using it as part of their financial planning. To determine if a trust will benefit you, contact our team for a complimentary no obligation opportunity to discuss your personal circumstances.
As part of our service, all Bentleys clients are encouraged to book in for a free one-hour annual review with our Trust expert Cleo Shortland, who will review your trust and ensure that the maximum benefits are being derived. Cleo’s review is a comprehensive process that ensures that the trust strategy complements:
- Estate planning
- Gifting strategy
- Maximising taxation benefits
- Legislation changes
- Risk management and life insurance