Advantages and disadvantages of a trust structure

Possible advantages of a trust structure include:

• • flexibility for splitting income;
• • estate planning;
• • asset protection; and
• • lesser levels of reporting and hence relative privacy.

Possible disadvantages of a trust structure include:

• • their relative complexity, particularly if they are bespoke structures established for particular asset protection and succession planning motives;
• • costs of establishment can be higher;
• • a trust is not a separate legal entity and the trustee can be held personally liable; and
• • trust structures can be difficult to restructure without adverse taxation and stamp duty consequences.

See Advantages and disadvantages of a trust structure.