Wills and testaments have become the prevailing choice for many when it comes to planning their estate, overshadowing trusts, which have receded from the forefront of public awareness, particularly in regions like Africa.
When individuals consider passing on assets to their loved ones, the immediate suggestion often revolves around drafting a will, relegating trusts to a secondary position.
However, when unfamiliarity breeds skepticism or indifference, it’s crucial to shed light on the significance of trusts. Allow me to elucidate their importance.
In essence, a trust entails a trustee holding assets, such as money or property, on behalf of a beneficiary.
Trusts represent indispensable tools within the realm of estate planning, often surpassing wills in efficacy. They offer enhanced privacy, unlike wills, as their contents remain private. Furthermore, trusts empower individuals to manage their assets during their lifetime and exert control over the distribution of their estate among beneficiaries upon their demise.
Assets ranging from real estate properties, agricultural lands, businesses, vehicles, life insurance policies, to shares in companies can be placed within a trust. Importantly, trusts serve as shields, safeguarding assets against personal debts, creditors, and other entities seeking to lay claim to one’s wealth.