You loves your family so much, you would want to give the whole WORLD to them if you can. At least you wish they can live their same lifestyle after you not longer with them. There are many solution to do that, thru Cash Personal Saving, Insurance, Will Writing, and Private Trust.
How Private Trust can benefit you, and your family?
What is Private Trust?
An express trust is created when the settlor expresses an intention either orally or in writing to establish the trust and complieswith the required formalities. An express trust is what people usually mean when they refer to a trust.
Every private trust consists of four distinct elements: an intention of the settlor to create the trust, a res or subject matter, a trustee,and a beneficiary. Unless these elements are present, a court cannot enforce an arrangement as a trust.
Taken from here
Why we need a private trust? and When we need it?
Good question. Let us look at it one by one, step by step.
Do you have your own estate planning? I treat it yes, you do it on Will writing, maybe done by lawyer or trust company. A Will will start functioning after you’re no longer around, means Death. Appointed Lawyer or Trustee for your Wills, will read it out in front of all beneficiaries after getting the Letter of Probate. The only issue is, everyone knew about the distribution, and the details amount too. Sometime is not a good moves too.
Will writing is a proper estate planning, yet sometime when someone challenge it, it will takes longer time for executor to proceed all necessary procedure. If there’s no any challenge from any parties or family dispute, the normal process would be 6-12months, based on each case, some might take longer. [Without Will writing, the normal process would be 3-5years, some case can drag to >10years, when family dispute]
What is the TOP 3 Benefit of Private Trust?
1. Your estate can not be FROZEN
When you’d started a trust, it means you either assigned a property or a cash amount to Trust Company, and that specific property/amount is no longer under your name, is parked under Trust Company based on the term agreed. If anything happens to you, for instant, passed away, the property and money will direct goto the beneficiary stated in the Trust. You can name few beneficiary and every individual received amount will be secret and undisclosed
2. Your “Will” can not be challenge
If you did a Trust for certain property and amount of Money, this is not challengeable. Nobody can challenge it. It will go to the beneficiary directly after your death.
3. Your estate is BANKRUPTCY PROOF
When the trust can not be frozen and challenge, it is a creditor and bankruptcy proof solution. If you being declared Bankruptcy, the money and property in Trust company is safe from creditor. In other meaning, no one can touch the money in the trust, except you and beneficiary. [If private trust, it needs five year after set up the trust, then only creditor and bankruptcy proof]
** You can revoke the trust agreement anytime based on your free will.
Stay Tuned for NEXT Topic about Insurance and how it can helps you and your family.