Planning for the future in difficult times
I think we can certainly say that we live in interesting times. The global financial crisis is far from over and there is the real possibility that it will last for much longer than was originally anticipated. The Bank of England pumping an additional £75bn into the UK economy is a good indication that it will take longer to return the UK economy to normality and the Euro zone has its own very real problems. Not to mention the various issues impacting the landscape in Switzerland.
For Ardel and our clients the position continues to be far from satisfactory with uncertainty being a significant concern when it comes to both forward planning and in transacting day to day business. This continuing uncertainty runs the very real risk of creating a paradoxical “inertia of inactivity” but the reality is that this is an ideal time to be planning for the future.
“If anything the crisis has shown us that good financial planning coupled with the flexible nature of discretionary trusts make trusts an ideal planning tool capable of reacting to change and adapting accordingly. “
If anything the crisis has shown us that good financial planning coupled with the flexible nature of discretionary trusts make trusts an ideal planning tool capable of reacting to change and adapting accordingly. The main uses of a trust structure can be summarised as follows:
- Estate planning designed to avoid disruption on death.
- Tax planning including forced heirship concerns
- The consolidation of global assets/wealth management
- Protecting the young and the weak from exploitation
- Asset protection issues
- Continuing a family business and preserving the family fortune
- Confidentiality
At the heart of the trust is the concept that legal title to the trust property is vested in the trustee. As a result the trust can often be the ideal vehicle to be used for investments or other asset types if there is a requirement to protect the client’s confidentiality. At the same time, provided the trust deed is drafted appropriately, a beneficiary may be able to retain a significant element of control over the investment of trust funds.
A trust today, both UK resident and offshore, is the culmination of a long line of both structural and legal development stretching back to the Middle Ages. It is an outstandingly flexible vehicle for management and disposition of property and its benefits are available to individuals from all parts of the world. The ideal structure for these difficult times, when there is often a need to act swiftly to mitigate risk and protect property, the creation of a trust is one step that can be taken by way of insurance against the vicissitudes of life.
For more than 35 years Ardel has been involved in the formation of trust structures and with offices in Guernsey, New Zealand, United Kingdom and Switzerland we are ideally positioned to meet clients UK domestic and cross border planning requirements utilising appropriate structures in premier league jurisdictions across the world.
