Private Family Trusts

Private Family Trusts

Unlike a Will, a Private Trust comes into effect during one's lifetime, and can be easily structured to meet specific requirements. It offers to the Settlor the flexibility in determining every aspect of the trust including management, distribution of assets, adding or deleting beneficiaries and setting the conditions for termination of the trust.

A Private Family Trust can -

• time the distribution of assets to its beneficiaries
• take care of Settlors in case of incapacitation or old age
• help in consolidation and management of family wealth by children residing abroad
• protect the interests of a minor child, aging parents or a family member with special needs
• help in ring-fencing of assets against possible losses due to business liabilities, tax claims, family related liabilities arising out of divorce/maintenance claims, etc.

Situations where Private Family Trusts Can be Useful

• A Private Family Trust can spread the distribution of assets to its beneficiaries over a long period of time.
• By having Settlors as beneficiaries in the Trust, the structure can be quite useful for taking care of the Settlors in case of Incapacitation or Old Age.
• For families where children live abroad, a Private Family Trust helps in consolidating all assets in a legal structure, thus making it easy for the children to manage the assets remotely.
• If one has a "Special Child", Private Family Trust is the only Fool Proof way to protect the child after the parents' demise.
• For business families, a Private Family Trust can be used for succession planning to ensure business continuity and prevent friction or splits in the family.
• Private Family Trust can help insulate and ring-fence assets for the family, so that they are protected from business risks.