We talked about Trusts and how this can be put in place in front of the Will. Remember the will only deals with your assets after you die. (In simple terms, the will is also a trust dealing with the disposition of your assets.)

Trusts allows you to set up the ownership of assets and control the direction of income from those assets to the nominated beneficiaries defined in the Trust.

There are different kinds of Trusts, which I’m not going to elaborate on here. Most of you will be interested in my definition above and its applicability to yourselves. So let’s get on with it.

The example in my previous blog wouldn’t have happened if there was a Trust in place that owned the family house but gave the stepmother a lifetime right to occupy it. Because the ownership of the house is in the Trust, it can never become part of the stepmother’s estate.

So, in respect of your situation how can you apply this great tool to lock up assets in the Trust, BUT still give you control over those assets? That is the secret essence of Trusts.

1. Let’s say you don’t want the kids selling off your assets after you die and blowing it on having a good time. Lock them (assets not the kids) into the Trust.

2. Or, you’re wanting to protect assets from sour relationships that happened many years ago before you had assets, then Trust the Force. There’s nothing like a death to bring the hordes out who believe they have a claim against your estate. But because everything is owned by the Trust and not you, it doesn’t become part of your estate, so they can’t get their mitts on it.

3. So, with society becoming more litigious and people wanting to sue more often, Trusts provides a firewall between you and the assets, as technically you have no business assets (they’re in the Trust).

4. You want to provide an education fund for your grandchildren, without your kids squandering the money. Simple, the Trust will control this.

5. There are tax strategies too, which I know you’re not interested in, so that’s for another day.

Very good question!! This simple answer may confuse you. You control it as its Trustee or (manager). You decide how and to whom income is distributed, according to the rules you set up when you established it. You’re King of your Kingdom here. Sounds like the best thing since sliced bread. But wait there’s more…How can it be so simple?

I’ll address this in my next post, for those who’re still keeping up.