Personal Trust

The advantages of setting up a personal trust include the following:

Asset protection

Creditors of the Settlor cannot lay any claims to the trust assets once a certain grace period has elapsed (length depends on the jurisdiction of the trust)

Minimising estate taxes

Assets transferred into a (irrevocable) trust are no longer subject to estate tax considerations for the Settlor (subject to local laws and regulations)

Avoiding probate issues

A trust can avoid lengthy probate delays and the resulting legal and professional fees

Protection of family business

A trust allows the settlor to ensure that a family business continues to be managed by competent professionals

Avoiding forced heirship

A trust can avoid forced heirship laws and regulations that are in place in some countries and thus give the settlor more flexibility in the distribution of assets

Elimination of incapacity risk

A trust ensures that key business or investment decisions will continue to be made even after the settlor becomes (suddenly) incapacitated

Migration planning

A settlor who wants to emigrate to another country will typically set up a trust to optimise the requirements of the new tax environment

Political risk management

A trust located in another jurisdiction can avoid the repercussions of political unrest in the settlor's home country

Uninterrupted distribution

Through a trust, the settlor can ensure that family members will be cared for financially and, should the need arise, also medically during their entire lifetime

Divorce fallout protection

A trust allows the settlor to ring-fence assets from any potential divorce proceedings