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Uses and Advantages of a Trust

Estate Planning
Trusts can provide an efficient way of planning for the management of assets upon death. Certain countries have legal codes prescribing how property will be distributed on death. Via a trust these forced heirship situations can often be avoided. It enables the settlor to ensure that long term provision can be made to fund education of children or provide an income for a distant relative.

Tax Planning
A Trust continues to be one of the most useful tools for mitigating inheritance, capital gains and income tax liability both during an individual's lifetime and on death. In simple terms once assets are transferred to the trust, they are no longer considered as belonging to the Settlor and therefore with careful planning, a trust structure can provide substantial tax savings.

Asset Protection
Trusts can be used as a means of protecting assets from the imposition of exchange controls or other governmental regulation and to shelter assets from potential claims from creditors.

Protecting the Vulnerable
A Trust can be a useful and flexible vehicle to provide for individuals not able to manage their own affairs ? aged relations, minors, disabled or persons suffering from illness.

Family Wealth Preservation
Preserving and increasing the value of the family wealth is often a key motive for creating a trust, which provides an ideal method of centralising control and administration of assets. An individual may wish to ensure that the accumulated family wealth is not divided amongst a number of heirs but retained as one fund which can then accumulate further, protecting assets for subsequent generations.

This can be particularly useful when a family business is involved, with the shares of the company transferred to the Trust prior to the settlors death hence avoiding the potential liquidation of the family company.