Protecting Vulnerable Beneficiaries

Although the focus is often on the potential tax-saving aspects of trusts, an equally important element of transferring assets to a trust is that of asset and beneficiary protection.

The concept of a trust is rooted in English law, dating back to the Crusades. Fearful of grasping neighbours, departing knights transferred land to a trusted friend, because women and children were, of course, deemed incapable of holding it themselves. Then when a trustee failed to hand back the land or otherwise abused his position, rights of redress then arose. And so a rich tradition of trust law has evolved.

As in the 11th century, trusts today can be a useful tool for ensuring that assets are preserved and that they are looked after on behalf of family members who may not be able to do so themselves for various reasons. Where assets are held in trust, the trustees have control over them, and can therefore make certain that the assets (e.g. cash, investments or property) are