A Family Trust as a Tool for Protection of Family Wealth
You have worked hard to acquire valuable assets or you have established your family business which has grown to be a successful enterprise. You are wondering how can you protect your wealth and eventually pass it down to future generations. This is where estate planning comes in.
Estate planning is the process by which an individual or family arranges the transfer of their estate in anticipation of death. Your estate is comprised of everything that you own; this includes movable, and immovable assets, as well as tangible and intangible assets. Regardless to its size or quantum, everyone has an estate that would require to be administered upon death.
An estate plan is important because it: –
- enables you elect your heirs or beneficiaries (that is, those who will inherit what from your estate;
- gives you the ability to name your children’s guardian in the event of your premature death;
- enable you protect your estate from creditors;
- enable you reduce taxes on your estate; and
- minimizes the chances of family strife and ugly legal battles.