A family with children, parents always wanted to protect their immovable property, cash and shares so that it would be beneficial for the future generations. So, the parents would choose the Trust for Asset Protection.
Consider, a family having children with disabilities will be unable to manage their assets. So, they can choose Protected Disability Trust where the third party Trustee can provide assurance and protection for their assets.
Now-a-days few parents are concerned that their assets may be in an issue because of wrongful actions by their children such as drugs, gambling etc. In this case, they can choose Spendthrift Trust through which the settlor can set up this trust with particular conditions to avoid dissipation of assets.
In a scenario, if the parents passes away and according to the chosen form of Discretionary Trust and based on the conditions specified by the settlor, assets are distributed. Usually, assets are provided to the beneficiaries for education, business or medical purposes according to settlor’s wish and trustee will still have some control over how assets are to be consumed.
In general, there may be conflicts among the siblings in a family, so the parents can choose Discretionary Trust, in which the settlor can specify how their assets should be managed, who benefits, how much they receive and when. This will be managed by Trustee as a third party professional.
Generally, if the parents are unable to look after their children from an early stages, they can choose Accumulation & Maintenance Trust. Once they set up this trust, it will look after the children i.e. income and capital to assist with maintenance(Example: settling their school fee). This trust ends when the child will be matured enough.