A Personal Trust is the foundation of almost every asset protection and succession planning structure. It will be used as a base document to protect your lifestyle and retirement assets and to allow for any changes that may occur in your life.
FOR ASSET PROTECTION
If you own assets and perceive that these could be put at risk or could have some potential for loss, then a Personal Trust is for you.
A Personal Trust will allow you to remove these assets from your ownership but still retain enjoyment and benefit from them. The rationale for establishing a Personal Trust includes ensuring that your assets will be handed on to your beneficiary(s)
FOR PROTECTION FROM CREDITORS
If a business should not trade successfully, creditors have recourse to your personal assets.
However, assets protected and ring fenced in a Personal Trust will, in most cases, not be available to business creditors. Without such protection your hard-earned assets can be subjected to claims from creditors.
FOR RETIREMENT PLANNING ADVANTAGES
A Personal Trust can protect your assets so they are available when needed for retirement. Use of a Personal Trust may also maximise tax advantages thus making the retirement dream that much more achievable.
FOR PROTECTION OF ASSETS FOR FUTURE GENERATIONS
An inheritance should be specifically received for the individual that the Trust was created for.
Wealth can be allocated incorrectly if the protection afforded by Trusts is not used.
FOR TAX PLANNING BENEFITS
When income is received in a Trust, the Trustees can elect how it is allocated –to retain it in the Trust or distribute some or all to beneficiaries. When such decisions are made Trustees should take into account the tax rates applying to beneficiaries which if properly done, can aid in tax savings.