Depending upon your situation, a family trust might be a good option for you. A family trust can protect the ownership of your assets while you are alive by transferring the legal ownership of the assets to the trust. It can be an effective way to move taxable income out of the hands of a high-income earner and into the hands of lower-taxed family members.

It can protect selected assets against claims and creditors or perhaps set aside money for special reasons, such as a child or grandchild’s education. It can also ensure your children, not their partners, keep their inheritances. They are also flexible and versatile ways to provide tax benefits and avoid probate, protect assets and manage investments. Business planning can also use a trust to direct new common shares after an estate freeze. In such a case, a family trust, which includes family members like children or spouse, can allow for tax effective income splitting for dividends or on the sale of the business and can provide structure for business succession planning. The collective advantage is the use of the lifetime capital gains exemption for each individual on qualifying small business shares.

Family trusts can be quite technical and need legal, accounting and financial expertise. Consulting with a Lawyer, Accountant and as well as an Insurance and Financial Advisor can provide recommended strategies as to the appropriate use of a family trust for your situation.

Contact Us for more information about how this could work for you.