The flexibility and protection afforded by trust arrangements are such, that they have become an important part of long term wealth management. Their uses range from holding private company shares on simple bare trust, to the prime holding vehicle on large, complex structures.
Their principle traditional use has been family inheritance planning. By providing continuity in ownership of assets, a trust can protect assets from aggressive governments or disinherited beneficiaries, avoid or mitigate inheritance taxes, forced heirship provisions and probate formalities, and make provision for the maintenance of a spouse, and maintain the education of minor children.
Trusts are also frequently used in planning against capital taxes and protecting assets against potential speculative litigation.
For corporate clients, trusts are commonly used in areas of employee benefit schemes, in administration pension or provident funds, or as part of off balance sheet finance planning, commonly known as special purpose vehicles.
Trusts are capable of holding all types of assets from real estate to intellectual property.
