FAMILY TRUST

Every one should have an estate plan no matter what your financial status. If you have established significant wealth for yourself and your families, it is certainly important to have a plan to protect them thru a comprehensive estate planning tools.

One of the best tools for family to handle the succession issues might arise – by transferring significant wealth is a family trust. A neutral, third-party corporate trustee can provide balance between family interests and asset protection.

What is A Family Trust ?

A family trust is a trust established specifically for the benefit of the members of a particular family. The purpose of creating a family trust is to protect and manage family assets for current and/or future generations.

You Don’t Own it, But You Can Control it !

Trust Corporation as trustee held the assets, therefore the business owner doesn’t own it but retains control and management of the assets.

Why Should I Set Up a Family Trust ?

1. Avoid probate

A family trust allows property to avoid probate and to quickly and efficiently pass to the beneficiaries you name, without the hassles and expense of probate court proceedings.

A married couple can use one basic living trust to handle both co-owned property and separate property.

2. Creditor Protection

Property transferred to the trust is no longer owned by the settlor (or the beneficiaries) and therefore should not be subject to claims from future creditors, provided certain conditions are met at the time of settlement.

3. Private & Confidential

A private document that is not filed with the court and is not expose to the public.

4. Business Succession

Its provides for continuity of asset management or business succession after death or incapacity.

5. Protecting Beneficiaries Against Claims

By placing these assets in a trust instead of directly in the name of your children, your children can continue to receive the benefit of those assets without the assets forming part of their personal property and therefore not subject to claims from partners.

By transferring family property to a family trust, the assets become assets of the trust rather than your personal property and may therefore be protected from divorce by beneficiaries.

6. Can’t be contest

To avoid any infighting over the inheritance among HNWI family members. The battles may begin when family members disagree with the distribution allocation from the will. Then family members have the right to contest the will.

7. Protecting Family with Minor or Special Needs Children

A family trust may be used to provide for minor children or other family members who require medical care or have special needs, or who are unable to manage their own affairs through either age or infirmity. Provisions can be made in the trust to protect against other family members who may intend to assume control of the family assets for themselves, following the death of the settlor.

8. Protecting Against Spendthrift Beneficiaries

Trusts can provide for long-term protection of family assets where you have concerns about how certain family members manage their own financial affairs.

The income or capital needs of family members can be provided for through the trust as their needs arise, rather than handing over your assets to your children, who may dispose of them in a reckless manner, thus leaving them in poor financial standing in the long term.

9. Protection For Overseas Assets

It also gives asset protection for HNWI on offshore properties, global businesses, which are subject to taxes where they are located, and probate in any part of the world.

Who Should Establish A Family Trust ?

Family with young children
Family with special child
Entrepreneurs with multiple businesses
Investors with across global investment
Public-listed companies owners
International corporation key-persons
Divorced couples
Single family
Multiple marriage with many children

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