In November, Jane Whitfield contributed an article for professional financial advisers on the subject USING TRUSTS TO CONTROL THE DIRECTION OF ASSETS:
The use of trusts has been receiving a mixed press recently, but establishing a trust to control the direction of assets continues to offer financial security, reduced tax liabilities find peace of mind for the future.
The root of much of the misunderstanding of trusts seems to stem from the fact that the trust structure has no equivalent in many European jurisdictions. As a result, they do not recognise trusts or fully understand how they work.
The general view of trusts among policymakers in these countries (and also in the UK to some extent) is therefore that the trust is simply a clever mechanism for money laundering.
However, this view fails to recognise how powerful a trust can be for perfectly legitimate purposes, and also fails to acknowledge the depths of the trust’s roots in centuries of English legal history: For almost 1,000 years, families have been using trusts to preserve and manage their wealth for the benefit of their heirs.