The tax advisor must be aware of many issues concerning trusts. This seminar dealt with two inter-related aspects dealing with trust assets. The first aspect concerns trusts which fail to protect the assets. The second aspect concerns the tax issues of disposals of assets or transfers of assets out of trusts.
One of the major uses of inter vivos and testamentary discretionary trusts is asset protection (from creditors and ex-spouses). Therefore it is important for both accountants and lawyers setting up trusts and advising clients to understand where assets of the trust are at risk in family law disputes and in bankruptcy.