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Money tip #4 – trusts

A trust can be a great way to keep tax on assets at a minimum while sharing the income among family members. A trust is a legal structure whereby assets (known as the trust property), such as money, real estate or even shares, are placed under the legal ownership of appointed trustees for the benefit of beneficiaries.

As there are complex legalities to setting up a trust, you will need to consult with a lawyer. Your accountant or financial planner can point you in the right direction of a lawyer specialising in trusts.

Along with the tax benefits, trusts also offer a form of asset protection, as the details of how assets are distributed are set out clearly in the trust deed as written and authorised by a legal expert.

However, trusts are not for the faint of heart. They are complex and expensive to establish and require the advice of experts. Do the due diligence before committing to anything.

For advice you can trust book a complimentary first appointment with Switzer Financial Services today.

Important information: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. For this reason, any individual should, before acting, consider the appropriateness of the information, having regard to the individual’s objectives, financial situation and needs and, if necessary, seek appropriate professional advice.

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Published on: Thursday, December 22, 2011

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