Family trusts are a great – and tax efficient – way for parents to retain control as they pass assets to grown-up children. Have you considered that a family trust might benefit you?
Trusts have their history in providing family wealth with protection: securing the safety of family assets for future generations whilst keeping them safe from the taxman, from legal challenges and from divorces. But they still have their place in today’s financial culture and can be very useful if set up to perform well for you.
Like any trust, a family trust is a legal arrangement (set up with the help of a legal advisor) where the trustees are made legally responsible for the assets in question. The trustees have a legal responsibility to carry out the wishes of the settlor – the person who put the assets into the trust. Sometimes, trustees are also required to make decisions about how the trust’s assets should be used. In any case, the assets are held “in trust” for the beneficiaries, protecting them and safeguarding the wishes of the settlor.
There are several types of UK family trusts and we can advise you on which is most suitable depending on your family’s circumstances. A trust can provide peace of mind if the person the assets pass to are not yet ready (or able) to look after them, perhaps in the instance of teenage beneficiaries or those who are infirm. Another benefit of setting up a family trust is that the legal arrangements ensures your wishes are carried out when your assets are passed on. Ask our advice about how a family trust can safeguard family money, investments or property.
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wish to consider the implications of setting up a trust fund to benefit my son and any children he has in the future