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There seems to be a common misconception

Pertaining to setting up trusts, to the effect that they divest you of your wealth and property. But as it happens, this is not entirely the case. While setting up a trust to protect your home, your wealth, and other assets may make you cash poor on paper, the truth is that you maintain a beneficial right to the use of everything that belonged to you in the process. That is if you have a well drafted trust deed. And in the event that tragedy strikes and your young family is left to pick up the pieces following your untimely demise, you'll be happy that you placed your assets and your term life insurance in a family trust.

Being prepared for the worst

Any assets you place in a trust are held in the names of the trustees. Whom are bound by the terms of your trust deed to act in the best interests of the beneficiaries you select. Beneficiaries could include yourself, your spouse, your kids, and/or other family members. But why would you do this as well as preparing a will?

Reducing estate administration costs

If you have a family home trust before you die, your beneficiaries won't lose a chunk of the estate from having to pay high estate administration fees that could be upwards of tens of thousands of dollars or have to wait potentially years to receive an inheritance.

You do all the work while you are alive

With a family trust in place for asset protection, they have already become in part, beneficial owners of any property or other assets while you are still alive, eliminating the need for high cost estate administration later on. Since they already have a beneficial claim via the family home trust (or other trusts) you've established, no change of ownership is required when you die, or lengthy delays saving both time and money.

Where would any life insurance payout go?

You should consider transferring term life insurance to your family home trust. So while you might appear to be cash poor today when you elect to protect your young family's future, they could be asset rich tomorrow in the event of your passing. This ensures that an unexpected accident resulting in death won't leave your loved ones in peril of losing key family assets. 

Ensuring sudden wealth is not wasted away

If your term life insurance policies are held in your family home trust in the event of a death, your family home remains protected, meaning any mortgage can be paid off and any remaining funds remain having to be managed in the best interests of your beneficiaries. Rather than the alternative, of a loved one suddenly becoming cash rich, being in grief and then making poor financial decisions and potentially wasting away any sudden wealth.

Seriously consider putting your plans into action today

You should really consider placing all major assets in trust. You won't give up control over the items you choose to transfer to the trust. You'll still have use of and control over your home, your savings, and even your life insurance, to a large degree. What you'll gain in the process is the peace of mind that comes with knowing your property will pass to the intended beneficiaries with little financial risk.

To find out more why not register with TrustUs today.

Its in your hands.