While you may think trusts are most commonly used for tax planning, you might in fact set up a trust for many other reasons. For example
- You wish to make a gift of money but continue to exercise some discretion over how that money, or asset is used and invested;
- If, due to illness or disability you are unable to look after your own assets;
- To ensure that any assets that you leave to your children are protected should your spouse remarry after your death.
In short, trusts are not primarily an instrument of tax planning but instead flexible vehicles for the management and control of assets.