Family Trusts and Estate Planning

A friend mentioned they’re setting up a family trust to protect their estate, how does that actually work?

Family trusts are often used as part of estate planning to help protect assets and control how wealth is passed on.

Unlike a will, which becomes a public document after death, a trust can provide greater confidentiality and flexibility.

Assets held in a trust don’t automatically form part of your estate, which may offer protection from challenges to a will or reduce the risk of family disputes. The trustee manages the trust and has the discretion to distribute income and capital to nominated beneficiaries. This can help you support family members according to their individual needs while also maintaining a level of control over when and

how they receive funds. Trusts may also offer protection from creditors or relationship breakdowns in some cases. However, they are not suitable for everyone and come with compliance requirements.

A financial adviser and legal professional can help determine whether a trust aligns with your broader estate goals.