Create a living Trust

Hello, I understand you are looking to ring-fence assets, including ongoing business benefits, within a living trust . This is an excellent way to plan for the future and protect your child's inheritance.

Here is some general information on how this process typically works.

Understanding Ring-Fencing and Trusts
Ring-fencing is a legal strategy used to separate and protect specific assets from potential risks, such as creditors or business liabilities. Using a trust is a common and effective method to achieve this. The trust acts as a separate legal entity to hold and manage the assets.

For this purpose, an irrevocable living trust is often recommended. Once you transfer assets into an irrevocable trust, they are legally owned by the trust, not by you, which provides a strong layer of protection.​

Key Steps in Setting Up a Trust
Creating a trust involves a few crucial steps, which should always be guided by a legal professional.

Consult an Expert The laws governing trusts are complex and vary significantly by jurisdiction. It is essential to work with an estate planning attorney in your location to ensure the trust is structured correctly according to local laws.

Define the Terms You will need to create a formal trust document. This document names the child as the beneficiary and specifies all the rules for managing and distributing the assets, including any income from business operations. You can set conditions for when and how the child can access the funds, such as upon reaching a certain age.

Appoint a Trustee You must designate a trustee—a person or financial institution you trust—to manage the assets on behalf of your child. This trustee has a legal duty to act in the best interest of the beneficiary.

Fund the Trust A trust is an empty vessel until assets are legally transferred into it. This process, known as "funding the trust," involves re-titling assets like real estate, savings accounts, investments, and business interests into the name of the trust.​​
Including Business Benefits
You can certainly include ongoing business benefits in the trust. This can be structured in various ways, such as transferring ownership of business shares to the trust or creating a legal arrangement where a portion of the business profits is paid directly into the trust for your child's benefit.

Please note that the information above is for educational purposes only and is not a substitute for professional legal advice. The process is detailed and must be handled with care to be effective.

For a more personalized discussion of your specific circumstances and to explore these concepts in greater detail, I offer one-on-one consultations via WhatsApp for a modest fee. If this is something you would be interested in, please let me know, and we can arrange a session.

Best regards.