Trusts

Making use of a trust as part of the client’s overall plan may be an option to meet the client’s needs, goals and objectives.

The trust may be:

• An inter vivos trust set up during the client’s lifetime (i.e. inter vivos trust, alter ego trust or joint spousal/partner trusts, prescribed rate loan trusts)
• A testamentary trust established in the client’s Will for a beneficiary with special and particular needs/circumstances (i.e. disabled beneficiary, elderly family member, financially improvident)
• A testamentary trust established in the client’s Will for beneficiaries who may be too young to inherit, or who may benefit from receiving their entitlement in stages
• An inter vivos/testamentary trust to deal with a particular asset (i.e. the family cottage, life insurance)
• A testamentary spouse trust to provide a financial safety net for a surviving spouse and also ensure that following the death of the surviving spouse, the remaining assets are distributed in accordance with the client’s wishes.

The advantages of a trust may resonate with the client:

• The privacy afforded by an inter vivos trust
• The reduction of Estate Administration Tax
• The ability to provide for an income stream and safety net for one beneficiary and ensure that the capital asset will pass to other beneficiary/ies
• The ability to preserve family harmony