The trust is a private contract in which a person called “settlor”, transfers part of his patrimony to a “trustee”, to be administered according to the established conditions, for the benefit of one or several persons called beneficiaries.
Next, we will see which are the different reasons why the constitution of a trust is highly recommended:
Protection from third parties:
This is one of the most important benefits of having a trust. ALL assets and wealth that are transferred to the trust are out of the reach of any type of creditor, whether you get divorced or go bankrupt in your business.
This is another reason why trusts are set up, since many of the countries that offer foreigners the possibility of setting up a trust also have tax systems that are very beneficial.
Since the trust is a private contract, by which you grant the administration of your estate to a third party, you will notably increase the level of privacy, since at the moment of signing the trust, a certain distance will be established between the estate and you.
As you can see in the article “The trust, the best way to protect your estate”, which you can find in our blog, and as the title itself indicates, to ensure the future of your family, managing your inheritance through a trust is the best way to do it.
Although generally a trust only requires 3 fundamental parties (Settlor, trustee and beneficiary), you can establish the structure you want and that best suits your needs, as well as set the rules and conditions you want.