Family trusts have been gaining steam these past years, and why not? It’s an entirely legal way to safeguard your assets for you and your loved ones. Your assets would be owned by the family trust instead of an individual and would be managed by trustees — whom you’ll appoint — for your beneficiaries. What other benefits could a family trust offer? Here are some of them:
- Legal Asset Protection – You could use a family trust for protecting your assets in the event of a claim against you or if your business fails. You could hold real estate, your business, as well as other investments in your trust.
- Protection Against Remarriage After Death of Your Spouse or Partner – Currently, the law allows even a de facto partner the right to claim assets even only after three years into the relationship. Having a family trust would safeguard your assets from failed remarriages or relationships following the death or a partner or spouse. This is especially useful in cases involving second marriages or relationships wherein one party isn’t the biological parent of the children.
- Healthcare Safeguards – A well-structured trust, provided that it’s been established for a certain time could likewise protect family assets in the event of health breakdowns, especially later in life, in which the state might impose that you get rid of your assets to be eligible for healthcare, explains Rainey Collins Lawyers and other renowned family trust lawyers.
- Asset Protection from Prospective Law Changes in the Future – A properly structured family trust could offer significant protection from a wide array of wealth tax types that might be passed into law in the future like inheritance tax or death duties.
- Imprudent Investments – A family trust could safeguard your family from falling prey to scams or financial predators and squandering assets prior to them reaching maturity or obtaining ample life experiences to make rational financial decisions.
Advance planning is the key to financial freedom and success, and having a well-structured family trust is only one of the many ways you could help secure your family’s future. Keep in mind that when you do set up a family trust, it must be structured in a way that meets your specific goals.