Why you should set up an Inter Vivos Trust
Estate planning is an aspect of life that many people don't make time for. But by ensuring you plan your estate well, it can make things a whole lot easier for you and your family.
One essential estate planning tool is an Inter Vivos Trust.
So what is an Inter Vivos Trust? And why should you consider setting one up?
Read on to find out…
What is an Inter Vivos Trust?
An Inter Vivos Trust
is a Trust you set up whilst you’re alive. On the other hand, a Testamentary Trust is one set up after you pass on.
There are a number of things that an Inter Vivos Trust can do:
It protects your assets from creditors;
It makes provision for the passing on of your estate to your beneficiaries in a straightforward manner; and
It saves on taxes, such as capital gains tax and estate duty.
Why set up an Inter Vivos Trust?
As well as the advantages above, it makes your passing easier for your family to deal with.
For instance, if you have a Will but no Trust in place, it means when you pass on, your estate is frozen. And it can take considerable time to sort your estate out.
A frozen estate may have financial consequences for your family until your estate is sorted out.
If you have an Inter Vivos Trust, your family will only have a few weeks to wait until they have access and control of the assets in the Trust. All that’s need to be done is a new Trustee appointed to take your place.
If you have substantial assets, an Inter Vivos Trust is worth considering. Or if you have started building your asset base and are still relatively young, chances are your assets are going to grow considerably before you die, and this makes an Inter Vivos Trust well worth considering too.
So there you have it. Why you should consider setting up an Inter Vivos Trust.
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