The legal arrangement referred to as a trust is entitled for developing various strategies for accomplishing & formulating estate planning, asset protection and privacy benefits for the settlers and beneficiaries (those who are entitled to receive trust’s income or principle either currently or at some time in future). It has been around for several hundred years. An increasingly popular tool of asset protection and estate planning is the Family Savings Trust. A family asset protection trust proves extremely beneficial in the case of high net-worth individuals, parents of complex or difficult family situations, family businesses considering succession planning and private business owners thinking about retirement and safe business exit plan. It can be very flexible in form and allows for the accomplishment of most important asset protection and estate planning goals.
A family saving trust is a successful strategy for holding ownership interests in entities such as companies / corporations, family limited partnership firms, and limited liability companies. It is an absolute legitimate approach to hold and protect family assets against lawsuits, business risks and uncertainties. A family saving trust is an absolutely bendable form of trust that can incorporate combined provisions of domestic as well as offshore arrangements within the language of the plan document. A family can hold all its assets within the trust but it must govern it with special terms that are favourable for assets. In most of the cases, the issues with outright gift to a child or successor in the family are eliminated through the use of family saving trusts.
As an additional feature the “offshore advantages” can also be included in the family savings trusts (in case the situation demands at some later point). The family asset protection trust can be structured to shift to a more favourable and relaxed jurisdiction (domestic or foreign), ie in case the situation demands. The provision can be applied to force any future plaintiff to the foreign location to the trust has already migrated to but is new or inconvenient to the plaintiff. Here, the family must ensure that they move the trust to a foreign location before the registration of any plaintiff against them else the country’s jurisdiction shall hold the matter entitled for the native legislation only.
With the creative trust strategies, the planning opportunities for achieving tax savings and asset protection advantages are certainly unlimited. Families can achieve this with the support of knowledgeable and experienced attorneys in the field.