Is a family trust the best choice for your wealth protection?

WHEN it comes to estate planning, few decisions are more complex—or more personal—than whether to establish a family trust.

- STACY ROUCHOS

High-net-worth individuals often grapple with this choice, prompted by advice from financial advisors, legal professionals, or well-meaning friends. While trusts can serve as powerful estate planning tools, they are not a one-size-fits-all solution. The key lies in understanding whether their benefits align with long-term financial and familial goals.

Family trusts are often promoted as a silver bullet for wealth protection, but the reality is far more nuanced. A trust can absolutely safeguard generational wealth and provide asset protection—but only if it’s properly set up, actively managed, and regularly reviewed to adapt to changing financial and legal landscapes.

The Benefits—and the Catch

Trusts offer several well-known advantages: they can shield assets from creditors, ensure financial stability for future generations, and maintain privacy over one’s estate. They may also serve as an effective tool for estate duty reduction. But they come with strings attached.

Dissolving a trust is far from straightforward—it can be legally and administratively burdensome. Too often, we meet clients who didn’t fully understand the long-term commitments involved. Once a trust is established, unwinding it can be costly and time-consuming.

Loss of control & risk of "sham trusts"