-1.png "Dan Harrison")
From an asset protection point of view, if you're in business you generally do not want to own any assets of significance as doing so can expose them to business risk.
Business ventures can be unpredictable and it’s essential to shield your wealth from any unforeseen liabilities. A well-run Family Trust creates a robust barrier between your business and your family’s assets and goes a long way to ensure that your home, savings, and investments remain secure.
Planning for the long term? A Family Trust is an effective estate planning tool that can allow you to determine how and when your children inherit your wealth after you pass away. If you own your major assets personally, typically the event that determines when your children inherit is your passing. That may be fine in terms of timing if your children are doing well. But if they are in the middle of a nasty relationship split, dependent on substances, or have creditors knocking on their door when you pass away, inheriting assets from your estate at that time is not a good idea.
With assets held in Trust, your children don't automatically inherit your wealth upon you passing. Rather, the then-trustees of your Trust can determine when and how your children inherit after taking into account their best interests in light of their circumstances. This can help protect your business and assets even after your gone and can ensure the smooth transition of your wealth to the next generation in accordance with your wishes.
A Family Trust isn’t just about asset protection. One incidental benefit of having a Family Trust is the ability, depending on your circumstances, to change your overall tax liability within the bounds of the law.
Bone fide tax planning and minimisation is called tax mitigation, which is generally lawful provided such efforts do not trigger IRD's anti-avoidance rules or don't amount to a mere sham.
(BizOwner Protect is not qualified to, and does not, provide tax, accounting or financial advice).
