EST053 Placing your family wealth in trust (498 words)

This article explains how trusts might benefit the creation and preservation of family wealth.

The basic function of a trust is to separate control and ownership. The result of using a trust is that assets are protected and profits are distributed in the most tax-effective way. There is no 'one-size-fits-all' type of trust. The trust you use depends on many factors, such as the type of asset or business, financing, income type, marital status, susceptibility to being sued - just to name a few.

Whilst there are many types of trusts the two most commonly used are:
1. Testamentary trust;
2. Discretionary trust.