What Is a Trust?

The Transer of a legal ownership of property by the Settlor to be held by the trustees for the benefit of the beneficiaries

Which Trust?

The choice of trust will depend on the individual’s financial and family circumstances

To make gifts and preserve wealth for future generations

A trust can be used to preserve wealth for future generations. By placing assets in trust, the creator of the trust (the settlor) can provide a degree of financial security for the immediate family and beyond.

To avoid probate delays

If a policy is not written under trust, the value of the policy will form part of the policyholder’s estate on death. This means the proceeds will not be available until the Will has been verified and a Grant of Probate issued. If there is no will, the rules of intestacy apply and delays may be experienced in distributing the proceeds of the policy while letters of administration are obtained.

To assist with tax planning

Transferring an asset into trust will change the legal ownership of that asset. This invariably changes the taxation of the asset, which creates a number of important tax-planning opportunities for the adviser to consider.