Originally created in medieval times and later developed in the context of Anglo-Saxon common law, the Trust was conceived to overcome legal obstacles and protect family assets.
The idea of entrusting one's property to someone else for the benefit of others is not new. As far back as ancient times, land was entrusted to third parties to achieve specific objectives. In the Anglo-Saxon context, the Trust emerged as a means to overcome legal limitations in the management and transfer of property ownership. In this way, beneficiaries could access the benefits of the wealth without formally being owners.
A key step in the adoption of Trust in non-Anglo-Saxon countries was the Hague Convention, which opened the door to this legal figure worldwide. This enabled its use in wealth and succession planning to ensure a smooth transition between generations.
Trusts are characterized by their versatility and unique advantages:
1. Protection: a Trust offers robust protection from creditors, allowing assets to remain intact for future generations.
2. Continuity: it is a perfect tool to ensure the continuity of family or business activities, avoiding undesired interruptions.
3. Flexibility: its adaptable nature allows it to be adopted for different purposes, such as the management of children's assets or charity.
4. Generational change: a trust facilitates generational change, allowing younger people to benefit from the family's assets in an efficient and fair way.
5. Confidentiality: privacy is a concern; the Trust permits information about beneficiaries to remain confidential.
A trust is a powerful and versatile tool that protects assets and simplifies the generational transition. With its historical roots and modern adaptability, it is an ideal solution for families wishing to ensure a stable and sustainable future for the next generations.
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