fbpx

Succession planning: Ensuring your children are financially supported after your death.

Share on facebook
Share on google
Share on twitter
Share on linkedin

This article will cover succession planning by combining a beneficiary trust with a will and testament. It will ensure that your children are financially supported in the unfortunate event of death.

Typically estates upon death are paid out as one big lump sum of cash as a split percentage for example 50% to the spouse and 25% 25% to each child.  If for example the estate was $1,000,000 this would mean access to a large lump sum of cash. More indepth will and tesitments may have access restrictions up until a certain age (say 18 or 21) however this can be prohibitive if the key family member passes away while the children are young as access may be restricted for some years. Another problem this can cause is that your inheritance is spent far to quickly if your successors are not adept at financial planning ,or are not accustomed to handling large sums of cash at once and the money is now “burning a hole in their pockets”.

Solition: If you wanted to say allocate USD $15,000 a year towards education (up until age 18) and also $12,000 per annum for accommodation up until age 21, then having a distribution from a beneficiary trust executed via a will and testiment could be a good solution.  If the account was capital redemption this would allow the funds to remain invested for the period and still grow, ensuring longevity for your children.

One of the key concerns that a beneficiary trust can solve is to ensure the long term financial planning for your children is being taken care of.
A beneficiary trust is a very powerful and secure tool that millions of people set up to not only support their own retirement while they are alive, but ensure that their assets are correctly handled in the most unfortunate of events, death.

I always advise that these be used in conjunction with a final will and testament to ensure that you are correctly protected.

This video will cover the structure and also a case study.

If you would like to speak to one of our selected experts please complete the forms on this page and we will be in touch.

 

Welcome to Compare Return

Where it’s our job to connect expats, with experts. The purpose of this website is to help educate the general public via free articles and blogs. The information on this website should not be considered as an offer to purchase securities, and nothing stated within this website constitutes advice. The material contained within is purely for educational purposes only and its accuracy cannot be guaranteed as laws and regulations change. Tax, estate and investment planning often requires expert advice. Any decision to plan or invest should be based on the information provided by an industry expert who has taken your personal situation into account. Neither this website nor any documents contained within it constitutes investment advice or an offer or solicitation to sell in any jurisdiction in which an offer, solicitation, purchase or sale would be unlawful under the securities law of that jurisdiction.

By accessing this website you represent that you are permitted by the laws of your jurisdiction of residence to access this site and the information contained herein. This website is not intended for residents of the United States. Compare Return Global Ltd does not give advice on the suitability of its educational content to private investors. If articles contain links or offering of larger purchases or investments, they may have an arrangement for remunerating Compare Return Global ltd. . We only host content that we believe may be truly helpful to the general public and offer value This website is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission of Compare Return Global Limited. Our Website uses Cookies Cookies are small text files held on your computer. They allow us to give you the best browsing experience possible and mean we can understand how you use our site. Some cookies have already been set. You can delete and block cookies but parts of our site won’t work without them.

By using our website you accept our use of cookies. We will not be liable for any loss or damage arising out of or in connection with the use of this site.
(1) I HAVE READ UNDERSTOOD AND ACCEPT THIS DISCLAIMER
(2) I CONFIRM THAT I AM NOT A RESIDENT OF THE UNITED STATES AND UNDERSTAND
(A) THAT THE INFORMATION THAT FOLLOWS IS ONLY BEING OFFERED TO AND IS ONLY INTENDED TO BE AVAILABLE TO PERSONS WHO ARE NOT RESIDENTS OF THE UNITED STATES
(B) THAT COMPARE RETURN LTD AND ITS AFFILIATES WILL RELY ON THE ACCURACY OF THIS INFORMATION.
(3) I CONFIRM I AM A PROFESSIONAL CLIENT OR ELIGIBLE COUNTERPARTY (as defined by the FCA)

TO ACCESS ALL AREAS OF THIS SITE PLEASE READ THE TERMS AND CONDITIONS SET OUT BELOW AND THEN CLICK “ACCEPT”.

This website use cookies to ensure you get the best experience on our website.