Beyond the trust deed: a team-based approach to legacy planning

OVER the past few years, we have seen an increasing number of requests to set up trusts for families as part of their legacy and estate plan. This is largely due to a greater awareness of asset-protection strategies, and the increasing wealth and complexity of family structures such as blended families, cross-border assets and vulnerable families.

Families also have a desire for more intentional legacy planning beyond just asset distribution. More clients now see trusts not merely as tools for the ultra-wealthy, but as vehicles of stewardship – a way to pass values alongside wealth. As a result, there has been a surge in the appointment of independent and bank-affiliated institutions as corporate trustees.

There are, of course, advantages to using trusts and corporate trustees. When one transfers their assets into a trust, they transfer the legal ownership of their assets to it. Therefore, a trust creates a legal separation between the settlor (the person who sets up the trust) and the assets. If properly set up, it provides creditor protection, and long-term guidance on how assets should be managed and distributed, which mitigates family disputes.