Your goal – protecting your assets
Protecting the assets in your portfolio can be just as important as building them up in the first place.
There could be any number of reasons why you want to look for ways to protect your assets; for example:
- ensuring that, when you die, your wealth is preserved for your chosen beneficiaries
- maintaining the privacy of your wealth
- separating your personal assets from your business.
A good way to achieve protection of your assets is through the use of a trust.
What are the benefits of using a trust?
Assets held in a trust are legally owned by the trustees on behalf of your chosen beneficiaries, so are no longer part of your estate – although you can still be one of the trustees. There may be exceptions as it depends upon a number of factors as to whether the assets will form part of the settlor's estate or not.
Upon your death, a trust can avoid the legal delays in establishing who should administer your estate. The trustees can distribute your wealth quickly and easily, while taking your wishes into consideration.
Trusts are private and can offer great confidentiality – particularly useful in complex family situations. If you own or part-own a business, the trust could protect some of your personal assets should something go wrong with the business in the future.