Financial Planning: The method of writing a will for distribution of property to the next generation or getting the will deed prepared with the help of a lawyer is not new. It is written in it that how much is the liability out of the property and how much is to be given to whom. After that, how will the remaining property be distributed among whom? But there is another way to distribute property, that is to create a family trust. This is beneficial in many ways not only for transferring property to the next generation but also during one’s own lifetime. You can even save tax through this.
Why is a family trust better than a will?
A person’s will comes into force only after his death. In this, no arguments are given about who will get what share of the property in the next generation. For this reason their authenticity is challenged many times and the matter goes to court. Property gets wasted in legal battles that last for years. Until the court’s decision comes, no one can take any share in the property, nor can it sell or transfer it. Once a family trust is formed, all its trustees become its legal owners. The family trust is separate from the will, so no disputes arise after a person’s death. After the formation of a family trust, a collective plan is made to save the property or to benefit from it by investing it.
Family trust also provides financial safety net
By forming a family trust, planning to save tax can also be done under various income tax rules. Apart from this, it provides many types of financial safety net. It also protects from many types of financial risks.
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