New Year, New Legacy
Protect Your Family with a Trust in 2025 (not the offshore kind!)
As the echoes of the festive season fade and we embark on a new year, many families find themselves contemplating their financial futures. Now is an ideal time to reflect on your legacy and consider ways to protect your loved ones and ensure the smooth transfer of your wealth across generations.
Also, following the Autumn Statement, you may be worried about potential inheritance tax exposure, so understanding your options is more important than ever. Family Trusts are a powerful tool that can help you achieve these goals, offering a unique way to safeguard assets and provide for your loved ones in the years to come. (Note: They are not to be confused with offshore trusts – which is a tax loophole the government is clamping down on.)
A Gift of Legacy
Family Trusts, often shrouded in misconceptions, are a powerful tool for safeguarding assets and ensuring a smooth transfer of wealth across generations. They are not exclusive to the wealthy elite. Families of all income levels can benefit from the strategic use of trusts. They offer continuity and asset protection, preventing wealth from being squandered by individual heirs and avoiding the forced division of assets.
Trusts allow you, as the settlor, to transfer legal ownership of your assets to a designated trustee, a person or organisation you trust implicitly. This trustee then manages the assets on behalf of the beneficiaries you’ve named. You can retain control of the asset or funds gifted to the trust during your lifetime but will usually be prevented from benefiting from it.
Choosing the right trustee is a critical decision. They hold significant power over the trust’s assets, so it’s crucial to select someone trustworthy, responsible, and ideally, with experience in financial management. Consider a professional trustee for added peace of mind.
Dispelling the Myths
A common misconception is that trusts are solely for tax evasion. While trusts can be used to mitigate inheritance tax liability, they offer a multitude of benefits that extend far beyond tax efficiency.
Trusts can:
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Protect vulnerable loved ones who might face challenges managing their inheritance, such as minors or individuals with disabilities.
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Prevent young heirs from receiving large inheritances prematurely, fostering a strong work ethic and ambition.
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Ensure business continuity by preventing the forced sale of assets upon the death of a business owner.
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Safeguard family assets from potential creditors or financial mismanagement.
A Legacy for Generations to Come
Despite periodic scrutiny and negative perceptions fueled by sensationalist media coverage of the offshore kind, family trusts remain a powerful tool for social good. They provide a flexible and robust framework for estate planning, allowing you to shape your legacy and ensure the well-being of your loved ones for years to come.
Seeking Expert Guidance
Establishing a family trust is a significant decision that requires careful consideration and professional advice. There are complex tax rules to consider, and those taking on the role of a trustee need to understand their responsibilities. An experienced estate planning professional and trusted advisor such as myself can guide you through the process, ensuring your trust is structured effectively to achieve your goals.
If you’re considering a family trust or want to explore other estate planning strategies, don’t hesitate to reach out to me.
Remember, planning for your legacy is not just about protecting your assets, it’s about securing the future you envision for your loved ones.
Sally Herdman – The Inheritance Guru
- 📞 07831 379562
- 📧 [email protected]