Common reasons for establish a trusts include:
- Privacy. Trusts may be created purely for privacy. No one will know what you will have under a trust, even the Taxes are avoided in your country for the goods/assets in trust.
- Spendthrift Protection. Trusts may be used to protect beneficiaries (for example, one's children) against their own inability to handle money.
- Estate Planning. Trusts frequently appear in estate planning either for tax reasons or for investments purposes.
- Investments. The trust has proved to be such a flexible concept that it has proved capable of working as an investment vehicle: the unit trust.
- Pension Plans. Pension plans are typically set up as a trust.
- Benefits Trusts. Trusts for the benefit of directors and employees or companies or their families or dependents.
- Asset Protection. The trust "asset protection" means separate yourself from the assets with the intention that future creditors will not be able to attack that money, even though they may be able to bankrupt personally, with the creation of a discretionary trust.
- Tax Planning. Trusts are frequently used for legal tax avoidance.
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