Setting up a trust can be an effective way to protect your property and assets from business risk, or when you are entering a second marriage and there are children involved. A trust can protect the ownership of your assets while you are alive and for future generations.
It is a legally binding arrangement when a person (the settlor) transfers legal ownership of assets to certain chosen persons (trustees) to be held for the benefit of other persons named by the settlor (the beneficiaries). If your family home is in a trust for example, you no longer personally own the house, but you can still live in it if that's what the trust deed states and the trustees allow.
There are different types of trusts, with different purposes. Asset protection, the preservation of wealth, and asset consolidation and management are some of the more common reasons for forming a trust.
Historically trusts were used so people would be able to get rest home subsidies but those gaps have long been closed. It is far more common now to have a trust to provide asset protection or succession of an asset through the generations.
Everybody’s needs are different, and our team can take you through issues and clarify potential difficulties. We’ll explain everything to you, and ensure that a trust really is the best structure for you.
If you’re thinking about setting up a trust or need legal advice around your existing trust, or if you have questions or would like more information, contact our team any time.