I’m a Business Owner…Do I need a Trust?

Owning and running a business is inherently risky.  Even the most diligent businesspeople can come up against unforeseen trials.  Future planning is critical, so you are well equipped long before your business faces challenging times.  Asset protection isn’t designed exclusively for the corporate giants; it’s a prudent and practical thing that every business owner should consider. 

What is a Trust?

Simply put, a trust is a legal arrangement involving three groups of people:

• Settlor(s): the individual(s) who provide assets to the trustees to be held on trust.
• Trustees: the people who hold the assets for the benefit of the beneficiaries. Trustees administer the assets in accordance with the Trust Deed and the Trusts Act 2019.
• Beneficiaries: the individual(s) who receive the benefit of the trust assets.

How does a Trust Protect my Assets?

When you transfer your personal assets into a trust, they are no longer yours but belong to the trustees.  As legal ownership has shifted to the trustees, this can protect your assets from business related creditors, insolvency and legal proceedings.  Furthermore, trusts can be used as an effective succession planning tool, giving you the ability to seamlessly pass your wealth on to future generations whilst managing the risk of the likes of relationship property claims.  This makes trusts an invaluable tool for long-term asset protection and estate planning.

Protecting your family home, investments and other personal assets is vital, especially when you dedicate so much time and effort towards developing your business and building your wealth.  Having a trust can help protect not only your lifestyle, but the legacy you’ve worked so hard to create, ensuring that any unforeseen business related challenges don’t threaten your long-term security and retirement plans.

Is a Trust Right for You?

If you are contemplating whether a trust is suitable for you, you’ve already taken an important first step.  The answer really depends on your specific circumstances.  Ask yourself:

• Do I have valuable business or personal assets to protect?
• Am I concerned about future liability or personal exposure?
• Do I want to pass my business to family or beneficiaries?
• Do I want flexibility in managing income and tax planning?

If you answered “yes” to one or more of these, a trust could be worth exploring.

It is important to note that trusts aren’t a one size fits all solution; they require due care and consideration, alongside strategic future planning that is specifically tailored to your individual circumstances.

Our experienced Asset Planning Team understands the complexities involved with business ownership and asset protection and can evaluate your needs to develop a suitable asset protection strategy.  We can guide you through every step, from establishment to day-to-day management. 

Contact us to discuss your asset protection requirements and we will work with you to create a strategy to ensure your assets remain protected, giving you peace of mind for the future.