No. It is erroneous to consider that trusts are only for the very affluent. However, in terms of the cost-benefit equation, it is generally considered that trusts become cost-efficient with asset values of €500’000 and higher. It’s not an axiom, though. Personal trusts are a powerful planning tool that can benefit a wide range of people across the wealth spectrum.
A trust depends not on the size of someone’s wealth but on the specific needs and purpose for which it is required and one’s unique financial situation, family needs, expectations and goals. Trusts can benefit any individual by ensuring, for example, the inheritance of assets in different jurisdictions without the need to have more than one will. Trusts can also protect and preserve assets, customise and control how, to whom and when one’s wealth is distributed – both before and after death. At the same time, they can assist the beneficiaries in managing property more efficiently, including minimising taxes, addressing family needs such as providing for young children and avoiding conflicts on inheritance in case of divorce, blended families or undivided property.
