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Introduction to Family Trusts and Planning
Family trusts have undergone massive amounts of changes in the past few years. The government has been targeting family trusts as they view the tax attributes as unfair, however, there are still numerous benefits of family trusts aside from the tax attributes. Our tax group is well versed in the constant changes in reporting requirements, trustee requirements and disclosures to assist in all aspects of family trusts.
Family and trust planning is vital for business owners to ensure the long-term protection of their assets and a smooth transition for their businesses. This blog provides a brief introduction to the importance of family and trust planning and offers key steps to help business owners prepare for the future.
Understanding Family and Trust Planning
Family and trust planning involves developing a comprehensive strategy to safeguard family wealth, ensure the seamless transfer of business and estate assets, maintain family harmony, and minimize tax implications. It addresses the unique challenges faced by business owners in managing both personal and business assets.
Why Business Owners Need a Trust
When deciding if you need a trust, it’s also important to understand why you might need a trust and what it means for yourself, your family, and your business. Some reasons include:
Asset Protection: Trusts shield business and personal assets from risks such as lawsuits and creditors, preserving wealth for the family.
Continuity of Business: Trusts enable smooth transitions by designating successor trustees and providing clear instructions for business operations.
Tax Planning: Trusts offer tax-efficient strategies to minimize estate tax burdens, providing greater financial security.
Privacy and Confidentiality: Trusts keep family affairs private, unlike wills, which become public records.
Preparing for Family and Trust Planning
Family and trust planning can be a daunting topic and it can be difficult to know where to start. When preparing, be sure to:
Evaluate Goals: Define personal and financial goals, considering long-term aspirations and the desired well-being of the family.
Engage Professionals: Seek guidance from estate planning experts experienced in assisting business owners.
Create an Estate Plan: Develop a comprehensive plan that covers personal and business assets, including ownership transfer, wealth preservation, and succession strategies.
Select the Right Trust Structure: Work with advisors to determine the most suitable trust structure, considering asset protection, tax planning, and specific goals.
Regularly Review and Update: Things change! Periodically review and update the estate plan to align with evolving circumstances.
Contact Us!
When business owners are considering how to best protect assets, ensure business continuity, and minimize tax implications, family and trust planning is a step in the right direction. By engaging professionals and following key steps, business owners can effectively plan for the future, securing their family’s financial well-being and preserving their legacy. The Mowbrey Gil team has experts ready to provide family and personal trust planning and administration services for you and your business — contact us today to get started!
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