Trusts are perfectly legal but they aren’t magic. In a nut shell, trusts can protect assets as they are a separate legal entity to yourself and you can stream income to take advantage of marginal tax rates.
Read more: http://blog.passare.com/2013/11/27/benefits-of-a-family-trust-infograpic/ | Passare.com Blog
(No.1)↠Young Call Girls in Sikanderpur (Gurgaon) ꧁❤ 9711911712 ❤꧂ Escorts
Benefits of a Family Trust - Infographic
1. Th E B e n e f its
of a f a m i ly tr u s t
1. Protect selected assets against claims and creditors – for example, to protect your
family home from the potential failure of a business venture.
2. Set aside money for special reasons, such as a child or grandchild’s education.
3. Ensure your children, not their partners, keep their inheritances.
4. Avoid unwanted claims on your estate when you die – such as from a former partner.
who’s Involved
A S et tlor
T rus t e e s
B e n e fic ia r ie s
it’s me
Love your lawyer!
let’s leave it to the boys!
Th e people w h o ben efit
The person or company
from t h e t rust , for example
who creates the trust, e.g. YOU.
members of your family.
Th e p eop le w ho manage the trust. If you a re t he se t t l o r yo u
c a n a ls o b e a truste e . It’s also a good id e a t o a ppo i nt a n
ind ep ende nt truste e like a lawyer o r a cco unt a nt .
What’s Involved
1 . You will need to decide what assets should be put into the trust.
2 . Ownership of these assets will then be transferred to the trust.
3 . The trust then owes a debt back to you, the settlor. This debt can then be
‘forgiven’ through a process called gifting.
4 . A legal document called a ‘trust deed’ will formally set up the trust.
5 . It will appoint the trustees, list the beneficiaries, and state various rules
for the administration and management of the trust.
6 . The trust deed needs to be very carefully written, preferably by a lawyer.
Costs and risk s
C os t s of t rus t s
Family trusts can be complex and time consuming to administer.
It costs money to set them up and there are generally ongoing legal
and accounting fees.
Risks of trusts
If a trust is not set up or managed well,
there can be considerable inconvenience and cost.
Onc e y o u p u t y o u r a sse t s into a t r ust , y ou no lon ger pers o n ally o wn o r
co ntr o l t he m . In st e a d, owne r sh ip pa sse s to t he appo i n ted trus tees who
mu s t ac t u n de r t he t e r m s of t h e t r ust d e e d i n the bes t i n teres ts o f
t h e b e ne ficia r ie s.
Getting advice
Family trusts should typically
be formed by a lawyer or a
professional trustee company.
TM
Twitter@PassareInc
Facebook facebook.com/passareinc
Tumblr passareinc.tumblr.com
SOURCES
https://www.sorted.org.nz/a-z-guides/family-trusts
http://www.howtolaw.co.nz/set-up-a-family-trust-xidp392293.html
http://money.howstuffworks.com/personal-finance/financial-planning/10-reasons-to-start-a-trust.htm