April 14, 2023 Freezer trusts: How they can protect your wealth

Freezer trusts can be an extremely useful means of succession planning, to protect assets in the event that the owner becomes incapacitated or passes away.  These types of trusts can be established with minimal assets (usually cash) up front, with a view to holding further assets (investments, property, cash, etc.) for the benefit of the beneficiaries of the trust in the long term.  The creator of the trust (known as the settlor) will not be able to access these assets during their lifetime.  On their death the assets that would otherwise form part of their estate instead pass to the trust.  At that point the trust becomes ‘unfrozen’ and will provide benefit to the settlor’s heirs and successors. 

These types of trusts are frequently founded during an individual’s peak earning years to ensure that any future assets, that would ordinarily be included in that person’s estate, are placed into trust and therefore not subject to the usual estate taxes. 

Establishing a freezer trust is an extremely prudent – and relatively inexpensive – form of protecting assets that can later be distributed to the beneficiaries. 

Despite the appeal of their simplicity, establishing a freezer trust can be complex at the outset and it is important that they are drafted correctly.  To ensure they comply with their stated intent, here at Oak we have dedicated professionals with considerable experience that enables us to provide our clients with the support that they need to establish and manage their family trusts and other structures. 

Contact Joe, to find out more.