One of the possible solutions for estate planning that we’ve discussed previously is trusts. Trusts aren’t just useful in helping to guard your assets against taxes, they can also be instrumental in helping to distribute said assets in many ways that transcend a basic will.
The difference here is a very important one, due to the fact that civil law jurisdictions (like France and Japan, for example) don’t look at trusts the same way, for the purposes of taxation, as common law countries do.
But when it comes to the protection of your assets and the future of your beneficiaries, the structure of a trust can make a huge difference. You can have both revocable and irrevocable trusts, depending on how much control you’re willing to give up.
When dealing with a trust, the choice between revocable and irrevocable is one of the first decisions you need to make”, says Richard Cayne of Meyer International in Bangkok, Thailand. “The difference between the two could impact your tax and legal liabilities in a variety of ways”.
At face value, the disparity between these two options is quite simple. Per their names, a revocable trust can be changed after it is put into motion while an irrevocable trust cannot. As long as you’re competent and alive, you (the benefactor) can make any changes you see fit to a revocable trust.
This means you can change the terms of the trust, add or subtract assets and/or change beneficiaries. Once an irrevocable trust has been set up, on the other hand, you relinquish control of the terms and the rights to the assets.
So you may be asking yourself: Why would I want to consider the option of an irrevocable trust if it means giving up all control?
Naturally, the thought of asserting control over the assets within your choice comes as logical. But is it truly necessary?
Unfortunately, with the control that accompanies a revocable trust also comes the possibility of legal issues and tax issues. You may still have to pay taxes related to your assets in most jurisdictions, as you are still considered to be the owner of said assets.
Additionally, once the trust is executed, the beneficiaries may or may not have to pay inheritance tax on the trust.
And if you find yourself in a legal or financial dilemma, the assets connected to your trust could be liquidated or seized for compensation, damages or repayment. The benefit of an irrevocable trust is that it protects your assets from liabilities of this nature.
When establishing a trust, there is a broad network of tax implications and legal considerations beneath the simple explanations given to you here in this article, particularly if your assets exist across multiple legal jurisdictions. This can even include states and provinces within the same country in some instances. With family-owned businesses, succession planning is an additional aspect of estate planning that will need to be taken into consideration.
To be certain you are making the right choices when it comes to your estate and your future, it’s imperative that you consult with a trusted financial expert like Richard Meyer Cayne.
Richard Meyer Cayne of Asia Wealth Group Holdings, the Meyer Group, Meyer Asset Management and Meyer International Ltd has been involved in wealth management planning for decades. Originally born in Montreal Quebec, Canada, he later relocated to Tokyo, Japan for over 15 years and now resides in Bangkok, Thailand. While he runs the Meyer Group and serves as the high credibility CEO of Asia Wealth Group Holdings Ltd, a London, UK Stock Exchange-listed Financial Holdings Company, as well as the Managing Director of the Meyer Group of Companies www.meyerjapan.com. and has additionally been the managing director of multiple organizations that specialize in helping high net worth individuals with succession planning .
Having worked with clients all over the globe with everything from portfolios to bonds to mutual funds to offshore investing to investing in retirement for your golden years, Richard Cayne of Meyer International can help you invest the right way and protect your cash. Richard has been a financial advisor involved in wealth management planning solutions and asset management in Asia for over 25 years and while living in Tokyo, Japan, he assisted many high net-worth Japanese families create innovative international tax and wealth management planning solutions. The financial holding public company of which he is CEO can be seen at Asia Wealth Group Holdings Ltd or the stock exchange link:
https://www.aquis.eu/aquis- stock exchange/member?securityidaqse=AWLP Asia Wealth Group Holdings Ltd – Richard Cayne Thailand. Meyer Asset Management Ltd has been in the wealth management space since March 2000 and uses fundamental analysis along with modern portfolio theory.
His image worldwide as a professional advisor has been sterling and he maintains a firm command and understanding of all things finance-related.