A legacy built on trust

Managing Director of Abacus Trust Group, Kevin Loundes, sheds light on the popularity of trusts

Trusts are versatile instruments used to manage and preserve wealth, facilitate seamless succession planning, support vulnerable individuals, optimise tax planning, and fund charitable endeavours. Abacus is known for offering a market-leading service in establishing and managing trusts. Our bespoke services are tailored to the specific needs of individuals, families, entrepreneurs, and businesses.

Why are trusts such a valuable tool for protecting wealth?
Kevin: They provide both flexibility and control. For example, a successful entrepreneur wanted to safeguard his children and grandchildren’s futures but was concerned they were not mature enough for the responsibility of such sums. Abacus established a trust providing professional trustees to manage the funds, making distributions for education, housing, healthcare, charitable donations, and giving general financial support to promote long-term stability and well-being. This approach preserves the majority of the wealth until the beneficiaries are older and better prepared.

How can trusts cater to diverse family needs?
Kevin: Abacus worked with a widow who has three adult children, each in very different situations. One is financially independent, another struggling, and the third is still studying. By establishing a discretionary trust, the trustees allocate funds based on each child’s specific needs. This ensures support is available when required, while the overall estate remains protected.

What if a client’s concerns extend beyond domestic borders?
Kevin: Many families, particularly those with global assets, are concerned about political instability and shifting tax regimes. Abacus established an Isle of Man discretionary trust for a client who owned property and investments in several countries. This structure held his assets securely while allowing the trustees to tailor distributions based on his geographically dispersed children’s local tax rules and personal circumstances. The result continues to be a robust shield against international risks and there was a seamless transfer of his legacy across multiple jurisdictions.

How do trusts facilitate tax-efficient wealth transfer for business owners?
Kevin: Recently, I assisted a business owner preparing for retirement who was concerned about the tax implications of transferring his company shares directly to his children. By moving the shares into a trust, his children benefit from the income generated by the business while professional trustees maintain control over the assets. This strategy ensures the business was managed responsibly during the transition.

How can trusts support charitable endeavours?
Kevin: A client wanted to support several good causes after his death but was unsure how to balance his estate between his family and his charitable giving. Abacus established a trust that named his wife, children, grandchildren and a few key charity groups as beneficiaries. The trustees were instructed to prioritise his family’s financial needs, with any surplus assets allocated to the charities over time.

Further information
www.abacustrustgroup.com

Kevin Loundes is Managing Director at Abacus Trust Group

No action should be taken on the basis of this note, nor should it be construed as amounting to tax, legal or VAT advice. Suitable, specific and professional advice should always be obtained in respect of any particular issue.