OK, I’m back on deck after a weeks diving on a live aboard dive boat in Cebu & the Visayas, Philippines.

In the last episode we made the transition from your Will to a Trust, as a will is effectively a trust to deal with your assets after your death.

Trust Deed

So to do it, all you need is a visit to to lawyer to draw up the Trust Deed. It is that simple, BUT you do need to plan it first and make sure they are specified in the Trust Deed as follows:

1. Who will be the beneficiaries of the Trust, you, the kids, grand kids, great grand kids, charities etc? They must be specified in the Trust Deed.
2. Who will manage the Trust (Trustees), you, your spouse, specified children (of adult age), friends etc?
3. Objectives of the Trust.
4. How income and assets will be distributed from the Trust.
5. How do I move my assets into the Trust? Generally you sell your assets or gift them to the Trust and then it’s done.
6. Where do you want your Trust to live? Complex point which we’ll deal with later, but initially your first Trust can be in your country of residence.
7. How the Trust is managed? General standard stuff that the lawyer is used to, which he’ll put into the Deed.
8. Your Trust is now ready. If you’ve transferred your various assets, they are now sheltered from creditors, litigation against you (remember you don’t own them now, the Trust does), matrimonial disputes etc.

In the next issue I’ll advise about management of the Trust and general tax matters. With planning comes some fiscal management responsibilities and fiduciary responsibilities to the beneficiaries. It’s not all about sitting on the beach sipping Mojitos … but it could be, once all the planning and organisation is in place!!!