Understanding trusts: Once assets are in trust, they are gone.

Those who operate trust services in the wealth sector feel it is pertient to make wealthy individuals properly understand that once assets are in trust, they are effectively gone.

For intermediaries or bankers, litigation can also be avoided if proper planning and understanding is built in from the start of the process, for instance when clients say: “so I can get the money back at any time?” the response should be: no - once you have chosen this route, it is given away forever. The reason why this is important and why “let-out” clauses are inappropriate is that they can just make the trust structure unravel if the revenue or IRS start a tax investigation because if the tax office can prove that the money can be recouped at anytime then tax penalties will be levied.

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