Kieran Coughlan: Should I trust to leave my farm to the next generation?
A bare trust is one which applies assets toward a specific beneficiary. An example could include a will prepared by a parent which states that a particular asset is to be appointed to a child upon reaching the age of 18. Picture: iStock
Discretionary trusts and trusts have fallen out of favour over the past few decades.
Historically, they were used as methods to protect property, to delay the transfer of property to individuals until they were ‘of age’, and in some instances, to avoid inheritance-type taxes whereby property would be carried down multiple generations whilst remaining within a trust along the way or offshoring property — as such the taxes paid were the only reference to what was taken out from the trust.
