The method of writing a will or getting a Will prepared with the help of a lawyer for the division of property to the next generation after you is not new. It is written in it how much is the liability from the property and how much is to be given to whom. After that how will the remaining property be divided among whom. But there is another way of dividing the property, that is to create a family trust. It is not only beneficial for transferring property to the next generation but also in many ways during one's own lifetime. You can even save tax through it.
Why is a family trust better than a will?
A person's will comes into effect only after his death. In this, no arguments are given about who will get what share of the property in the next generation. Due to this, their authenticity is challenged many times and the matter goes to court. The property keeps getting wasted in the legal battle that goes on for years. No one can take part in the property, nor can sell or transfer it until the court's decision comes. Once a family trust is formed, all its trustees become its legal owners. The family trust is separate from the will, so no dispute arises after the death of a person. After the family trust is formed, collective planning is done to save the property or to take advantage by investing it.
Family trust also provides financial safety net
On forming a family trust, planning can also be done to save tax under many rules of income tax. Apart from this, it provides many types of financial safety net. It also protects from many types of financial risks.
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