Trusts are becoming a common technique of structuring business and personal affairs. If you are looking at using trusts in Wyoming in any way, you should have a clear knowledge about the legal requirements and the relationships involved. Always ensure you get proper information before forming a trust. Most lawyers are skilled and talented in this area, but the best thing to do is to contact a legal advisor that specializes in this area.
Main Reasons for Forming a Trust
Some of the reasons for setting up a trust include the following:
Estate Planning. Although estate duty or wealth tax is no longer active, it is wise to organize appropriate estate planning using a trust.
Protection from Creditors. By having your personal or business assets safely secured in a trust, it helps to quickly avert any possible loss of those assets to creditors (in case of any emergency or business downturn). A trust helps protect assets against claims resulting from business downturns or other liabilities. A major advantage of the trust is that it helps protect or expose potential liabilities.
Tax Savings. If the trust is properly controlled and managed, then the exact allocation of income which belongs to the trust, beneficiaries, and others will lead to taxation savings. This tax benefit is another reason why trusts are utilized.
Claims by Close Relations etc. If you move your assets into a family trust while you are still active then those assets will be well secured and it will not be a subject of litigation after your death. Your close relations and others who don’t have a right to the property will be prevented from accessing the assets.
Matrimonial or Relationship Property. You can utilize trusts in Wyoming to prevent some of your assets commonly referred to as relationship property (also known as matrimonial). This implies that your partner would be prevented from accessing or laying a claim to the assets if there is any need to break up the relationship or divide the property. It can also be used for the protection of the assets from other relationships like de facto or similar.