Alan Hall’s Tips: Trusts

More invaluable advice from PFM Managing Director, Alan Hall

Why create a Trust? Because we can’t always know the road ahead…

What is a Trust? When you create a Trust you transfer all your assets into that Trust. You can still have access to these assets while you are alive; in fact, we will recommend you are a Trustee of your own estate. The one main benefit of all trusts is how they will keep your estate out of probate after your death. Trusts have been around in Britain since the Middle Ages. Today, the benefits of creating a trust are recognised throughout the world, especially in countries that have a legal system based on common law principles.

Why Trusts? Despite the recent changes in the UK in relation to the Inheritance Tax (IHT) treatment of trusts, trusts are still considered an important tax-planning tool. When combined with an offshore bond, the trust/bond arrangement can offer a number of attractive tax planning features. With the correct structure, a trust can assist in preserving family wealth, and help to reduce families’ exposure to inheritance tax.

Where to Trust? To cope with today’s fast changing environment, the advisor needs a choice of well constructed trusts that offer tax planning and wealth preserving solutions.

Friends Provident International’s range of trusts has been redesigned to meet those needs and PFM International are in a position to use Friends Provident’s various trust packages to assist their clients in many of the above areas. A Trust offers the perfect solution where clients want the proceeds of their estates to be paid out as a lifelong income to their heirs, as opposed to a lump sum payment (as is the norm with a last will), which may cause difficulties, especially in the case of a surviving Thai partner.

Call +66 (0)8-1764-3048 to speak to Alan direct for free, no obligation advice based on over 20 years of experience.