In order to have a sense of security, people have started to establish various plans so as to protect assets; with the help of a trust company, trusts and inheritance tax planning are easier to handle and be benefited from.

The trust and the inheritance, as symbols of wealth, have a long history dating in Ancient Rome, emerging as means of protection as well as the ability to transfer wealth across generations. There is a significant difference between the two, as a trust has a legal attribute allowing the placement of assets in a special kind of account, whereas an inheritance presents with bigger taxes when being accessed, also providing a probate.

When referring to contemporary inheritance laws, compared to the ancient ones (when it was not as clear and precise as it is nowadays), legal frameworks are the ones setting the tone, giving individuals the chance to pass on assets by means of trusts and wills. There is an exception made by the inexistence of a will and that is statutory succession, which happens automatically. Nevertheless, one of the most important steps to take is defined by trusts and inheritance tax planning, as it offers the possibility to plan ahead and get an idea about the complexity of it all.

The Role a Trust Company Plays in the Economic World

First and foremost, a trust company presents itself as a fiduciary, having both an ethical and legal obligation to enforce the best interest of the client and appropriately give advice. Secondly, these type of companies offer services that cover anything related to wealth from managing investments to settling and monetary planning, thus covering a wide range of needs in the ever-changing economic world.

Depending on the client’s necessities and requirements, trusts and inheritance tax planning provided by companies can take different forms, while also offering legal advice so as to reach a better conclusion by having all the data. Same goes for choosing a representative when deciding to approach this kind of path, as the market is continually expanding, offering many options and solutions to various demands. By gathering information and doing proper research, the client can make informed decisions regarding the overall well-being of their assets, thus making sure to be properly represented when the need arises. Some key points in making a proper decision are:

• Deciding what the needs are and offering services accordingly;
• Doing thorough research on various companies and taking reviews into account;
• Checking if they are legally approved by looking for their licensing;
• Assessing communication and problem-solving style so as to establish if collaboration could be possible.

A trust company is often times connected to a bank or a law firm (although some of them work as independents), thus offering a greater insurance and comprehensive view of the situation. Covering a wide range of asset management and investment, a trust company is the ultimate kind of systematized enterprise that has the ability to alleviate distressing situations.

Trusts and Inheritance Tax Planning: Covering All the Bases

Considering trusts and inheritance tax planning is the next step to successfully affiliate with a company that can help with such demands. For starters, creating a strategy goes a long way and can be of much help in times of urgency. For example, some common actions are the creation of a life insurance (which can also be placed in a trust), trying to gift the belongings before death, or even making property or business transfers in order to prevent any inheritance tax from occurring.

Planning is essential so as to protect the wealth by reducing any tax burdens and augmenting tax-free allowances so as to make the most of what is rightfully obtained. If planning is not done accordingly, the heirs risk having to bear a hardship that could have easily been avoided were the right steps into that direction taken. Consequently, trusts and inheritance tax planning have proven to create a sense of safety among both the deceased and the heirs, giving them a peace of mind and control in the event of distress. It goes without saying that a proficient trust company is able to cover all of the bases when the need be.

Inheritance Strategies Considering the Types of Trusts

There are several types of trusts covering all kinds of needs and ensuring the creation of portfolios for any situations that may arise. The most common trusts are the revocable and irrevocable ones (the former allowing control of assets and can be revoked, while the latter cannot be revoked and has the attribute of protecting the assets from creditors), closely followed by the testamentary one, which is commonly used when wanting to leave a structured inheritance to heirs.

In order to correctly strategize, professional and experienced companies in this field, create personalized offers taking into consideration the client’s needs and requirements. Being able to create a relatable connection is key to successfully support the client in demanding times.

Tax planning (trusts and inheritance included) started to rise in popularity with companies specializing in this type of counseling. Managing to handle this issues in a subtle and elegant way, while applying the law, is becoming a very sought after feature that every company should have.

Building a Trust One Honest Step at a Time

For every individual, the idea of mortality, in its irrevocability, can seem rather terrifying and coming to terms with it is a work in progress. There are very few things around it that can be controlled, but thankfully, assets are on the short list. In this regard, the financial point of view benefits from the years of accumulated knowledge and can be more easily applied in a personalized matter.

All in all, being able to access such an evolved market (and also compare offers) is one of the perks of living in such developed times, with doors to the future opening with the help and involvement of a trust company.

Publication: 14 April 11:20