7 SIMPLE REASONS WHY TRUSTS ARE STILL IMPORTANT
- Humans make mistakes. Mistakes can get you sued. If your assets are in your name they are at risk.
- Even if you have a company, more often than not the Directors of that company will be asked to personally guarantee the performance of the company’s obligations. This means that if the company fails, the Directors can be sued and any personal assets they have, taken.
- The new Health and Safety requirements together with certain other legislation allow government departments and third parties to look through the limited liability protection that companies afford and for Directors to be “got at”, meaning again it is desirable to park your assets elsewhere.
- Having a shareholding Trust means super profits that your business generates can go straight to the Trust which allows flexible estate and taxation planning.
- If you don’t yet have a relationship partner, then if set up properly now, having a trust will help protect you against future Property Relationship Act claims.
- If you do have a relationship partner now and/or will in the future and one of you dies, there is always the risk that the survivor gets into a new relationship that fails, and half of your and your deceased partners assets are then stripped from the survivor by that failed new relationship partner – often at the expense of your children.
- If you’ve already been separated, the best way to avoid losing another 50% of your goodies, is to park them in a Trust.
If you have any questions about the above or you would like to discuss this further please do not hesitate to contact David Houston, partner.