Investing in gold protects wealth against the destruction of paper money. To buy gold through a trust can have many advantages such as asset protection, asset preservation as well as estate and tax planning. A trust also gives a higher degree of confidentiality. Very importantly, a trust protects its beneficial owners from malicious creditor claims. Wealthy families have often used trusts to provide for future generations. Setting up a trust used to be very costly but today trusts can be created at a relatively low cost, whether they are onshore or offshore trusts. To understand the full benefits of investing in gold, investors should also study the “Why Gold” page as well as ”The Private Investor and Gold” and “Buying gold in your own name”.
Malicious creditor claims are very common today in many countries. This can happen to anybody, but some professions are more exposed, for example medical doctors. To defend these claims can be very costly and destroy wealth built up during a life time’s hard work. A properly constructed trust protects investors wealth from such attacks. A trust also keeps wealth intact for future generations, rather than distributing the assets to the heirs.
Tax & Estate Planning
There can be substantial tax benefits arising from holding gold or other assets in a trust. In some jurisdictions, combining a trust with an annuity or insurance wrapper can also be very tax efficient. Investors must check this with tax counsel in their own country as MAM does not give tax advice. With a properly constructed trust, tax benefits can be substantial both for income, capital gains as well as inheritance tax. A trust also gives more flexibility when it comes to transferring assets or distributing income to heirs.
Confidentiality & Probate
With the openness of the internet, it becomes ever more difficult to keep information about private assets and wealth confidential. A trust makes it possible to keep the assets within the trust confidential. The death of a head of family can result in major disruption of a family estate, whether or not there is a will. In most common law jurisdictions, the estate must go through the probate procedure with possible added delay, expense and publicity. Probate can be avoided by establishing a trust because the death of the trust grantor will not affect trust property, which will continue to be held and managed in confidence by the trustee.