How to protect the inheritance you leave
Do you want to protect the legacy you leave to your family? Create a trust within your to protect and maximise the inheritance you leave your family.
Practice Director Cam Schroder says there’s many benefits to setting up a trust within your will.
“There’s a few things you’ll need to check first to see if a trust is right for you and your family. The first thing you need to consider is the cost.
“To set up the legalities of a trust, costs can start from around $2500. Secondly, a standard will is not expensive, we charge $220. Adding a trust, often called a Testamentary Trust, will increase the cost of your will, costs start from $770. Lastly a will is usually most effective when there are assets of $500,000 or more to be distributed and multiple family relationships to consider.”
If you’ve taken all of these considerations on board and are ready to go ahead and set up a trust. Cam says there are many benefits to a trust.
Do you want to protect the legacy you leave to your family? – 4 Benefits of a Trust
- Protects an inheritance when divorce or separation happen
- protects your children’s inheritance from creditors if they come up against professional lawsuits or bankruptcy
- Tax effective distribution of inheritance assets
- Provides a tax effective way to ensure your children and grandchildren have money allocated for their education
Legacies left to individual family members in a trust are not considered personal assets. So when a family member experiences separation or divorce the legacy you leave them is protected.
When inheritance money is held in a trust for family members it is no longer a personal asset for the receiver. This protects your children’s inheritance from creditors if they come up against professional lawsuits or bankruptcy in their work or business.
Trustees distribute the inheritance held within a will’s trust. They have the authority to distribute assets each year to the individuals. This could give them the option to allocate the inheritance to family members who pay less tax.
A trust is also a tax effective way to leave money for children and grandchildren’s education.
Consider setting up a trust within your will because the legacy you leave can set your family up for a successful future.