A family trust is a powerful tool for organizing and distributing your assets in a way that aligns with your long-term goals and ensures that your wishes are followed at any stage of your lifetime and after the unfortunate event of demise or incapacitation.
One could have various reasons for planning their estate, such as preserving family wealth, providing for surviving spouse and children, funding children and/or grandchildren’s education, or leaving their legacy behind to a charitable cause. Here are the key advantages of establishing a family trust:
Avoiding Probate: Assets placed in a family trust typically do not go through the lengthy, stressful, expensive and public probate process. This can help streamline the administration of your estate and keep matters private.
Control Over Asset Distribution: With a family trust, you can set clear guidelines for how and when your assets are distributed to beneficiaries. This can be especially useful if you want to manage distributions for minors or those who may not be ready to handle a large inheritance, while at the same time protecting your loved ones from those who may illegally want a share of your estate in your absence.
Tax Efficiency: Depending on the structure of the trust, there may be opportunities for tax planning, both during your lifetime and for your beneficiaries in the future. We can discuss specific strategies that may help reduce tax liabilities for you and your heirs.
Protection from Creditors: In some cases, a family trust can provide an added layer of protection against creditors, ensuring that your beneficiaries receive their inheritance without unnecessary legal complications. – Courtesy of JD Mali Ltd
