Family Trusts

As family wealth increases, thoughts about tax reduction, wealth preservation and wealth transition also increase.


One way families can address all three concerns is by using a family trust. Family trusts can be testamentary (arising on death) or inter vivos (used while alive).


A family trust, like any other trust, requires three main parties: a settlor, trustee(s) and beneficiary(ies).


The settlor establishes the trust and contributes the first asset At this stage the Settlor is finished with his or her involvement. Typically a parent or sibling would be the settlor as the settlor typically needs to have a reason for undertaking the action. The settlor surrenders the trust property without any consideration.


The trustee manages and administers the assets on behalf of the beneficiary.


The beneficiary benefits from the income and capital of the trust.


These roles and the terms of the trust are found in the trust deed