Protecting your lifestyle while you are here and living
There is one main reason why we set up family trusts: they allow us to protect assets for our loved ones during our lifetime and beyond. These structures, when paired with a last will and testament, can help to ensure that items of both monetary and sentimental value are passed along to our intended beneficiaries. Trusts are only one form of asset protection, but they come with a slew of advantages that may be lacking in other means of transferring wealth between loved ones. Here are some benefits you're sure to enjoy when you set up a family trust.
Family Trusts provide longer term benefits rather than immediate advantages
When you first decide to place assets into a family trust structure, you might not see the immediate advantage. After all, you will no longer own your assets, technically. However, just because you are placing items in trust does not mean you lose control over them. You can set up the structure in such a way that you are able to make certain decisions regarding the items held in trust, either at the time the trust is created or after the fact. Just because you are placing property into a family home trust doesn’t mean you can't live in your primary residence any more.
Protecting those you care about from poor financial decisions
You can make provisions for continuing to use assets during your lifetime, determine how to allocate any income generated by items in trust, stipulate how to run the trust should you become incapacitated, and, of course, name beneficiaries to receive assets either during your lifetime or after your death. Also, trusts are not subject to probate, meaning the contents of the trust remain private and assets will go to beneficiaries much faster than items listed in a will following your passing. In the meantime, any assets placed in trust will be protected to ensure that they go to named beneficiaries down the road. How is this outcome guaranteed, though?
If you are in business there are more medium term benefits like creditor protection
No matter what you may owe, personally or professionally, creditors can only come after the assets you own for repayment of debt. If a business fails, you lose your job and are unable to pay bill, or there are other claims to your assets, anything you own could end up on the auction block, so to speak. However, items placed in trust are no longer yours. Creditors cannot try to claim, say, a family home held in trust because it is no longer considered your personal property.
A stitch in time saves nine
It's important to understand that you can't use a trust to evade the law. Setting up a family trust when creditors are already knocking down your door as a last ditch effort to avoid paying debts won't work - courts will not look favorably on this underhanded tactic. But if you set up a trust when your finances are in good standing, it should give you the best opportunity to protect wealth and pass it along to future generations.
So why not learn more and register with TrustUs today.
After all, it's in your hands.