Trusts
What is the single most important concern when you have created wealth?
It is about distribution of that wealth in the most efficient manner. Wealth is created for the family to enjoy the benefits of owing a fortune but for the person who has created this wealth the prime concern is how this will be distributed and more so if he is not around to dictate the distribution.
One of the ways of ensuring this is done as per your wishes is to creating a trust; a private trust. A private trust can be used as a means for providing inheritance and for distributing your wealth as well.
Formation of a private trust
- Execute a trust deed
- Identify trustees i.e. the set of people you trust and who would manage its affairs
- Specify type & purpose of trust
- Transfer the money to get the trust into action
Why should you consider doing this?
There are books written to answer this. However some salient features are as follows;
- A Will is like a public document available for inspection by concerned parties before the court grants a probate v/s a private trust deed is a private entity and not available for public scrutiny.
- It can be set up for a purpose and the time frame may also be defined
- It does not matter if the trustee dies. New trustees can be added as required to ensure completion of the interest and purpose of the trust
- The tax treatment of a trust does not involve any additional complication
- Money received by beneficiaries from trust is not taxable in many instances
- Trust is very difficult to be contested v/s the Will can be easily contested. In many instances the trust is quite an effective mode of transfer of wealth.
Setting up a trust is quick and easy and we can guide you through the entire process.