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AdobeStock 200828447 1 1 - Looking for an effective asset preservation and transmission tool? Consider setting up a Trust

Looking for an effective asset preservation and transmission tool? Consider setting up a Trust

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Real estate investment is generally a great investment option. It can generate ongoing passive income and can be a good long-term investment if the value increases over time. However, when making such investment, one should consider structuring the acquisition through a Trust. A Trust is the right tool for estate planning, attempting to eliminate uncertainties following the demise of the owner and maximising the value of the estate by reducing taxes and other expenses.

Would your family know where to find your financial records, titles, and insurance policies if something happened to you? Planning your estate now will help you organize your records, locate titles and beneficiary designations, and find and correct errors.

Most people don’t give much thought to the wording they put on titles and beneficiary designations. One may have good intentions, but an innocent error can create all kinds of problems for a family at death. Beneficiary designations are often out-of-date or otherwise invalid. It is much better for some to take the time to do this correctly now than for the family to pay an attorney to try to fix things later.

Estate planning is one of the most important steps any person can take to make sure that their final wishes are honoured, and that loved ones are provided for in their absence. Though often overlooked or put off in favour of more immediate concerns, a comprehensive estate plan can resolve a number of legal questions that arise whenever anyone dies. A Trust can therefore be an important tool.

What is a Trust?

A trust is a fiduciary arrangement that allows a trustee, to hold assets on behalf of a beneficiary or beneficiaries. Trusts can be arranged in many ways and can specify exactly how and when the assets pass to the beneficiaries.

With a trust, your beneficiaries may gain access to these assets more quickly than if these were transferred using a will. Additionally, if it is an irrevocable trust, it may not be considered part of the taxable estate, so fewer taxes may be due upon someone’s death.
Other benefits of trusts include:

Control of your wealth. Someone can specify the terms of a trust precisely, controlling when and to whom distributions may be made. For example, a trust can be set up so that the assets remain accessible to you during your lifetime while designating to whom the remaining assets will pass thereafter, even when there are complex situations such as children from more than one marriage.

Protection of your legacy. A properly constructed trust can help protect your estate from your heirs’ creditors or from beneficiaries who may not be adept at money management.

Privacy and probate savings. Probate is a matter of public record; a trust may allow assets to pass outside of probate and remain private, in addition to possibly reducing the amount lost to court fees and taxes in the process.
The types of assets which can be consolidated into a Trust include bankable assets, real estate, shares, insurance policies

Contact: kenny.curpen@ocorian.com

KENNY C 1 - Looking for an effective asset preservation and transmission tool? Consider setting up a Trust
logov2 - Looking for an effective asset preservation and transmission tool? Consider setting up a Trust

Ocorian is an international provider of corporate and fiduciary services, with 700+ staff deployed in 12 jurisdictions around the world. Our Private Client service line supports high-net-worth individuals and families, working in partnership with your advisors to preserve and protect your wealth

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1 Comment
  • Debbie
    Posted at 07:21h, 05 Feb Reply

    What about the high tax rate of trusts – 45%. . What do you recommend?

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