Did you ever think about money saving or financial planning? If not then this article is for you. Writing a will or having a lawyer draft one to divide your property for the next generation isn’t a new concept. It clearly outlines who owes what from the estate and specifies how the remaining assets will be shared. However, there’s another option: setting up a family trust. This approach not only helps in passing down property but also offers various benefits during your lifetime, including potential tax savings.
Why choose a family trust over a will?
A will only takes effect after someone passes away, and it often leaves room for disputes about who gets what. This can lead to legal battles that drag on for years, wasting time and resources. Until the court resolves these issues, no one can access or sell the property. In contrast, once a family trust is established, the trustees become the legal owners, eliminating disputes after death. A family trust allows for a proactive plan to manage and grow the property.
Additionally, a family trust acts as a financial safety net. It can help with tax planning under various income tax regulations and offers protection against different financial risks.
