Benefits of trusts and similar structures like international trusts, foundations, companies and other fiduciary structures are used by our clients to protect assets and control how those assets are passed on to future generations in a way that is flexible, reliable and tax efficient.
Trusts can be used for many purposes, and provide a range of financial benefits. These include:
A trust can reduce the impact of local and foreign taxes. This depends on the tax status of the settlor and beneficiaries as well as the location of the assets.
Protection of assets
A trust can protect assets from a range of potential threats including political instability, irresponsible heirs and even ‘gold diggers’ marrying into the family.
Consolidating assets through a trust can enable more efficient administration and reporting, which saves both time and money.
Holding a family business company through a trust can protect the company from break up after the death of the settlor.
A trust enables the settlor to benefit family members (including future generations) without ownership and control being given to the beneficiaries.
Privacy and anonymity
So that clients can avoid unnecessary publicity and attention, a trust can provide greater privacy regarding the ownership of assets and how they are managed.
A trust enables assets to pass to selected beneficiaries without the cost and publicity of formal probate proceedings.