Trust Benefits

Here are five benefits of setting up a Trust:

  1. An estate’s financial concerns will remain private
    By law, the financials of a Trust remain a private concern and are protected from public inspection which is not the case when it comes to a deceased estate. Deceased estates must, by law, be advertised in the Government Gazette so that anyone who may have a claim against you can come forward and settle that claim upon your death.  
  2. It may minimise estate duties
    A Trust should not be used solely for tax planning purposes, but it’s worth speaking to your financial advisor to find out whether you may be able to minimise the impact of estate duty on your assets upon your death if you decide to set up a Trust. An ‘inter vivos’ Trust, for instance, created while the individual is still alive and when assets that have the potential to increase in value are transferred to the Trust, can help ensure that minimal estate duty is payable on the assets owned by the Trust.
  3. More effective distribution of your possessions
    Trusts are considered ideal vehicles to prevent mismanagement of inheritances. This can include minors or anyone who is incapacitated, or even a person suffering from a mental disorder. The appointment of the most appropriate trustees for your circumstances is of chief importance. Your trustees will administer control over the assets and protect it to ensure it benefits your beneficiaries, so you should choose carefully.
  4. Enjoy enhanced protection of your assets
    Depending on the type of Trust you opt for, any assets that you place in it are not owned by you or your heirs and beneficiaries. The benefit is simple: your loved ones can enjoy the use of your assets and no creditors can claim debts against the assets you place in the Trust.
  5. Secure uninterrupted succession
    It’s important to note that should one of your loved ones die, it does not impact the operation of the Trust. Your remaining loved ones will be able to continue enjoying the assets of the Trust, which won’t be the case if you bequeath assets to individuals upon your death.

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