Family Trust: Key Points to Consider Before Setting Up

• A family trust secures assets like property, savings, and investments, ensuring they reach beneficiaries at the right time and in the right way.
• The settlor transfers assets into the trust, which then holds them in its name; control can remain with the settlor if they also act as trustee.
• The trust deed is crucial, outlining beneficiaries (children, dependents, etc.) and how/when they access income or assets.
• Trusts can be revocable (settlor retains control, can alter/dissolve) or irrevocable (fixed terms, stronger asset protection from creditors).
• Forming a trust involves deciding its purpose, choosing trustees, preparing a detailed trust deed, paying stamp duty, registering it, and obtaining a PAN and bank account.