“Put not your trust in money, but put your money in trust” – Oliver Wendell Holmes Sr.
You’ve probably heard the term ‘Trust’ being thrown around a lot. So, what is a Trust anyway?
A Trust is simply a legal arrangement that lets a third party, in most cases a trustee, to hold assets such as property, stocks, money etc., on behalf of the intended beneficiary. Trusts are established to protect and enhance a family’s assets and ensure they are indeed passed to the future generation efficiently and safely. Think of it as a safety deposit box where all your valuable items are placed for the ones you love.
A Trust can be set up by anyone whose intention is to safeguard something for their beneficiaries, especially minors or the vulnerable, without interference.
Let’s delve into how exactly a Trust can benefit you or the ones you love in the future.
How do Trusts they work?
A Trust is a legally-backed financial plan that is passed from a grantor (the person setting up the Trust), that owns the trust to the beneficiary, who is the recipient. You, as the grantor selects a trustee who will manage and safeguard the trust after you are gone or in the event of your incapacitation. You essentially decide who gets it, when they get it and how they get it and have complete control over the running of the Trust.
Setting up a Trust is unique to each individual and is essentially based on the needs you would like met for your beneficiaries. Sitting with trusted fund managers such as ITSL Trust Company ensures all wishes are met your Trust is setup according to your wishes.
Trusts aren’t as complicated as most people think they are. There are several types of Trusts out there – think of how many types of bank accounts there are. Each type catering to your different needs wishes, similar to the different types of bank accounts that exist. The thing they have in common is that they keep your money safe and Trusts aren’t that much different. Different Trusts work for different needs and finding one that suits you should be simple.
Why should you consider Trusts?
We’ve seen Trusts are not defined by a specific net worth and neither is it a prerequisite to setting up one. With the help of a Trustee, you are able to see out oversee the day to day affairs of the fund until it is granted to the beneficiary which is when it becomes active. Even when you are gone or incapacitated, your legacy will still be intact just as you intended.
Legal processes can be expensive, time-consuming and emotionally draining. Therefore, a Trust is ideal because it is more difficult to contest in a court of law. The information in your Trust is not available to the public hence maintains your privacy Therefore ensuring your wishes are honored when you are gone and little to zero information is accessible to the public. A will is however contestable in a court of law and information is available to the public. It’s worth noting that there is a high level of detail in a Trust, allowing one to be very specific, and this is often an advantage they have over Wills.
Trusts funds are often very flexible and customizable. In the end, they save people the legal back and forth and ensure the assets are disbursed as per your wishes.
Interested in our setting up a Trust? Talk to us today on 0719 071 999 or E-mail us at email@example.com, we will conveniently happy to walk you through your Trust of interest.