If you simply gift cash, property or other assets directly to your family members, these gifts are included in the estate of the person who receives them. This means they are exposed to social impacts, such as divorce, remarriage or bankruptcy.
We don’t like to think that we or our children will divorce, but the reality is that it may happen – exposing your assets to claims outside of your bloodline.
Directing your wealth into Trust means it is better protected from third party claims, such as from an ex-partner or creditors. The assets are owned by the Trust and are generally considered outside of the beneficiaries estate, which means they may not be included as part of a divorce arrangement.
If you own a property or business, land or other assets, or if you have a pension, Death in Service benefits or Life Insurance, you need a Trust framework to protect them.