A Legacy Intact: safeguarding your family business in the event of divorce - Book - Page 74
Trusts can be useful to keep
inherited assets such as a family
T R U S T S , PA R T I C U L A R LY I F T H E Y A R E S E T U P
LONG BEFORE A BENEFICIARY HAS ANY
INTENTION OF MARRYING, OFFER ANOTHER
USEFUL LAYER OF PROTECTION FOR YOUR
FA M I LY B U S I N E S S
business ring-fenced and if they are
It is essential not to conflate their
set up as non-nuptial settlements
knowledge about the strategy for
well before a beneficiary is married
the settlement with the beneficiary’s
or contemplates marriage, they can
knowledge, as the two may be very
add further protection. In the event
different
of a divorce of a beneficiary, it is
not
likely that the trustees will be asked
getting divorced but also the other
questions about the trust. It will be
beneficiaries.
for
have
implications
the
beneficiary
important for the trustees to take
their own advice before replying to
When trusts are set up there will
such enquiries.
often be a letter of wishes from the
settlor setting out his or her overall
Typically, trustees will wish to be as
intentions for the trust and how he
helpful as possible to the divorcing
or she wishes the beneficiaries to
beneficiary. However, it is important
benefit and in what circumstances.
for the Family Court to see the
Moreover, these letters of wishes
trustees act, and be seen to act, in an
can also be updated.
even handed way so they maintain
their independence.
74
only
and
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