Trust funds for everyone?
It may be too late for you to have a trust fund baby’s life but you can still make it happen for your kids, even if you’re not a gazillionaire.
March 21, 2012 4:37 by kippreport
Have you ever wondered what it would be like to live the life of a ‘trust fund baby’? Well, it may be too late for you but in the next generation it looks like this previously elitist image of trust funds is slowly ebbing away. That is, if the survey from Atlas Corporate Services are anything to go by.
That the survey found that more than 70 percent of expatriates in the UAE said they would like to set up a Trust or Foundation for their children or dependents given the chance is not surprising at all. We’d all like to secure our future and the future of those who depend on us.
What is interesting is that the perception previously regarded for Trusts and Foundations is changing from being considered as tax-saving tools only for the wealthy to 68 percent of the UAE’s expatriate community seeing these tools as attainable and sensible mechanisms for financial planning.
What’s the difference, you may ask. The research suggests that it’s due to “an increase in income and a clearer understanding of the benefits involved” in subscribing to these methods.
During these days when financial uncertainty seem to be the only certain thing, it’s great to see that in place of fear of investment, people are looking for smarter ways to secure their own future in ways that used to only be seen as reserved for the uber rich.
And with Trusts and Foundations, when used correctly, tax exposure can be minimized and you can make sure that your assets will be redistributed the way you want. The words ‘privacy’ and ‘asset protection’ comes to mind.
Aside from being a more investment-savvy generation, the survey also found our current generation to be more charitable with 73 percent regularly donating money to charity. Atlas Corporate Services coins the term ‘The Give Back Generation’ here. In any case, this is an especially interesting development, considering constrained economic times. Perhaps there is hope for mankind after all.
How about you, Kipp reader? Would you consider creating a trust fund? Or do you have one already? Share your stories on what made you decide to have one or not have one.