A Trust is a useful device for passing assets out of one person’s estate without them passing directly to another person.
In most people’s minds Trusts are thought to be confusing, complex and costly. However they are in fact relatively simple to establish and the costs are considerably less than you might imagine.
The following are circumstances in which a Trust can assist:-
- Second families (to benefit the children from a previous relationship)
- To benefit a disabled relative
- To protect assets
- Where you have concerns about the possible divorce or bankrupt of family members
- If beneficiaries may spend or invest money unwisely
A Trust can be a halfway house between owning assets in your name and transferring them outright to someone else. You can transfer assets into the Trust but still retain a considerable amount of control by appointing yourself as a trustee together with other trusted family members (or a professional person if you wish). In this way a Trust can provide an excellent combination of control, security and flexibility.