Key benefits include:
Asset Separation: Trusts separate personal assets from those transferred to the trustee, safeguarding them from potential legal actions, creditors, or family disputes. This is particularly useful for protecting family wealth and ensuring it is managed and distributed according to the settlor’s wishes.
Succession Planning: Trusts allow precise control over how and when assets are distributed to beneficiaries, ensuring that wealth is preserved over time. For example, trusts can manage succession for minors or individuals with special needs, distributing assets based on specific criteria set by the settlor.
Flexible Asset Management: The settlor can establish tailored rules for managing and distributing assets, maintaining indirect control over their use.
Confidentiality: Unlike wills, which become public upon probate, trusts provide greater privacy as their details remain confidential.
Tax Efficiency: Trusts can reduce tax liabilities, such as inheritance taxes or other personal taxes, and are particularly beneficial for managing international succession by addressing cross-jurisdictional asset transfers.
Trusts are versatile tools that can serve numerous purposes.