TRUSTS - why have them?

Trusts have been around for a very long time. Individuals and families use them as a way to control how their assets are held and transfered to other people. Control is a primary reason why trusts are used. You will also hear the words "asset protection", which refers to protecting assets from risk. What are these risks? They can affect people whose property is being placed into the trust and also the future beneficiaries of the property. The risks can include:

• bankruptcy
• loss of heirlooms/"family money" through divorce or remarriage; 
• incapacity arising through a health event;
• being too young or inexperienced to deal with property or investments
• assets being accessed by those with addictions who would otherwise use those funds to further support their addiction;
• certain taxation outcomes

Taxation can often, but not always, be a secondary concern compared to family goal planning.  Family goal planning is primarily concerned with the protection and preventative measures listed in the other examples above.

For example, imagine a family has a child with special learning needs. The child is not disabled as such, but perhaps there is a concern that the child will never learn the value of money or will be unable to handle financial transactions. The wills of the parents can include a trust from which that child benefit. This means that no property needs to be transferred directly to that child, and payments can be made by the trustees as and when they are required, or even a house purchase, without the child needing to be involved in any of the paperwork or any of the transactions. There could also be flexibility so that certain funds could be paid to the child – for instance they may develop confidence and an ability to deal with certain amounts and in this way the trustees can support the development of the child whilst at the same time control the larger portion of the fund for the child's benefit.

There are many many scenarios uses of trusts which ensure that the beneficiaries interests are looked after.

As usual it is very important to obtain professional advice when looking at Estate and Asset Protection planning. (I am able to recommend suitabley qualified people).

TALENT

Isn't it fascinating that if we listen carefully we can hear something profound in the most unlikely of places:

"Trust me: you have a talent that none of the rest of us have. Just find out what it is and use it. It's doing nothing that's the enemy" - 'Sybil' - Downton Abbey, Sunday 2nd October 2011.

ON POINTS of view

Speaking with passion without the facts is like making a beautiful dive into an empty pool.

DO WE ever over-complicate things?

I recently read the following story...


Sherlock Holmes and Dr. Watson went on a camping trip. As they lay down for the night, their conversation drifted to:

Holmes: "Watson, look up at the sky and tell me what you see."
Watson: "I see millions and millions of stars."
Holmes: "And what does that tell you?"
Watson: "Astronomically, it tells me that there are millions of galaxies and potentially billions of planets. Theologically, it tells me that God is great and that we are small. Meteorologically, it tells me that we will have a beautiful day tomorrow. What does it tell you?"
Holmes: "Watson, you bonehead. Somebody stole our tent."

LET IT GO or hang on?

You know how sometimes we may get a little frustrated when a prospective customer or team member may not respond the way we had hoped, or an existing client or business partner doesn’t behave the way we would have liked?

Well, this is not productive and even reduces productivity for the future because we can be hesitant the next time we approach someone.

It’s a bit like playing golf and being unable to forget a bad shot. It is not useful to carry the negative emotions and feelings about the bad shot into the next. It’s better to let it go.

Our success or failure is never based on how a single event turns out. The decision of one potential or existing client or business partner is not the issue. The issue is our daily habits, performed consistently over a reasonable amount of time.

Imagine what would happen if the majority of our working days were invested in the correct amount of high pay-off activities consistently. People will respond both positively and not so positively, but what if you didn’t let obstacles that you know will occur deter you from doing what will lead to working with your next customer, client, team member or business partner? Imagine the results you’d receive.

You and I have little influence, if any, over how a person will respond but we can learn to let it go. The best way to let it go is to take goal directed action so that you do not empower a few individuals who may struggle to make decisions about working with you control your destiny.

Learn to let it go.

(With thanks to Bill Bachrach for inspiring this blog)