- Trusts are used for a variety of different purposes, including setting aside wealth for your dependants and honouring maintenance agreements.
- Trusts can be structured in varieties of ways to suit different needs, including protecting assets from creditors, creating college funds and securing your next generation’s wealth.
- Trusts can be administered by a trustee, the best of which would be an institution.
Purposes of Trusts
In creating a trust, you set in motion the legal instrument by which your estate will divided. In the simplest of terms, trusts are legal relationships between people, dictating the distribution of assets between them.
The most common use is to safeguard assets for minor beneficiaries. Basically, this creates an inheritance in the form of a trust which is a failsafe way of passing on your assets.
Types of Trusts
You can structure your trust to pay out for higher education fees when your child leaves school, or perhaps structure it in such a way as to pay out 50% when they leave school and the other 50% when they begin graduate school.
You can set-up a trust to pay your former spouse on a month-to-month basis or lump sums yearly. You can include cost of living expenses and education expenses for your children as part of this too.
If the longevity of your future generations is of importance to you, you can even set-up lifetime trusts to pay out to your future generations until the funds run dry, giving them a greater chance at a successful life. This can contribute to educational or cost of living expenses to you grandchildren or other families, taking a huge financial burden off their shoulders.
Administration of Trusts
Trusts are legal relationships facilitated by one person for the benefit of a third party, which means that someone needs to be appointed to administer your trust. Crest Trust is able to administer your trust by managing your assets and investments, managing relationships between your beneficiaries and trustees and ensuring that your trust complies with relevant legislation. We can help you create trusts which follow the correct legal procedures, safeguarding your beneficiaries’ inheritance. Get in touch with Crest Trust now to set-up your trust immediately.
Fiduciary institution base their entire business around trusts, will and estates, placing them in the best position to act as trustee for you trust. Often appointing a family member as a trustee to your trust, you invariably open up a door to increased family tensions. Another big problem people face when choosing an individual as trustee is a scenario in which the trustee passes-away before the trust is closed (which happens often). The best way to avoid this would be to name an institution as trustee of your trusts, where the responsibility of your trust is in the hands of generations of experts within an organisation