Many people fear the possibilities involved in creating and growing their wealth and how it will be distributed following their death. These possibilities can include:

  • Creditors ceasing your assets
  • Your family becoming bankrupt
  • Your heirs spending their inheritance unwisely

Luckily, within Trust and Fiduciary services, you will be able to create a Trust for asset protection. A Trust is a legal relationship between parties; the Trustmaker signs over their assets into the Trust’s name for their benefit or that of the beneficiaries to the Trust.

According to Mclarens, attorneys at law, “Trusts can be used to create safe havens for assets of individuals. They have the effect of separating assets from the personal ownership of the individual to ownership by the trust thus providing protection from creditors of that individual.”-

Whether creating an Inter-vivos Trust (commences during your lifetime) or a Testamentary Trust (commences when you pass-away), you can create a Trust for asset protection whilst fulfilling a number of testamentary roles.

As we have discussed, Trusts can be used as a holding vehicle for assets as part of your Estate Planning structure. But how else can Trust and Fiduciary services be of use to you?

Trust and Fiduciary services: testamentary applications of your Trust of asset protection

Once you have decided to safe-guard your assets, you will need to decide on the structure of your Trust, according to your specific needs. If you have young children, you may decide to create a Lifetime trust which can pay throughout their lives. This can include funding their tertiary education and even providing for expenses in their adult years.

Trusts can similarly be used to:

  • Honour maintenance commitments
  • Provide for those with disabilities
  • Provide a regular income for charities, dependants of deceased employees, and anyone else important in your life for whom you need to provide

Creating your Trust for asset protection not only safeguards your assets from potential threats, but also provides effective holding vehicles for them to be administered as you stipulate. If you are interested in growing your wealth and minimising the risks involved, speak to your Fiduciary advisor for more information on Trust and Fiduciary services.