Private Family Trust
A Private Family Trust may be established using standard forms or can be customized to meet specific needs of the client.
A trust is created by the execution of an agreement, the Deed, by which the Settlor transfers the legal ownership of assets to a trustee, who then holds the assets under the terms of the agreement for the benefit of the beneficiaries, who may include the Settlor.
There are many purposes for which a trust has been developed, including:
- Allows for the continuity and retention of family businesses and property.
- Sheltering property from potential creditors and the forced heirship laws of certain countries.
- Holds foreign investments, patents and copyrights, or insurance policies.
- For pre-nuptial arrangements and divorce settlements.
- Protect the family fortune from dissipation by less responsible family members.
- Make provisions for spouses, family, friends or charities, including broad classes of beneficiaries such as unborn grandchildren.
- Consolidation of family interests in one estate planning vehicle.
- Provide protection for families or individuals seeking diversification via the transfer of a portion of their assets to an offshore jurisdiction.
- Enhance protection against the possible implementation of exchange controls or the seizure of assets due to nationalization or similar measures.
Some Key Features:
- Revocable / irrevocable
- Partial / full discretion
- Protector provisions
- Special Company provisions (for holding shares on managed /operating businesses)
Amongst the powers commonly found in a discretionary trust are:
- wide powers to invest or to delegate investment management
- power to add or exclude beneficiaries
- power to amend the Deed
- power to borrow or lend and
- power to create sub trusts