What’s The Downside with Trusts?

1. You lose control of your money
2. You give control to someone who may or may not be trustworthy.
3. You can’t change your mind (about having given away your money).
4. The trustee may or may not follow your “letter of wishes”.
5. In any case, the “letter of wishes” is not a legally binding document.
6. The trustee may do what you say, instead of what you mean!
7. Nobody’s going to look after your own money like you mean!
8. The law may change, making trusts useless from a tax and inheritance point of view, but it’s too late to do anything about it. On the contrary, your trustees will love each and every change in the law because this will give them a “genuine” excuse to re-arrange your affairs for a small consideration.
9. The protector who is supposed to protect your interests almost certainly won’t know, in advance, if your money is being diverted.
10. Trusts cost a lot to set up and a percentage of you wealth to manage. If the government told you they were going to impose a wealth tax of 1% per year you and the other tax payers would be up in arms.  But people gladly pay this, and more, when they sign away their life savings with a trustee.

All of these negatives don’t mean you shouldn’t have a trust for specific purposes or for a portion of your assets-provided you can be convinced that none of them outweigh the specific advantages you are seeking. 

We have established both trusts and hybrid trusts for members, although incorporation an offshore company structure offers the same advantages with none of the disadvantages associated with trusts.  We have incorporated several offshore companies for members over the years.