FAQs
Estate Planning is a means by which an individual organizes his financial affairs using various tools to ensure that his dependents are properly catered for even after his demise.
Everyone does! No matter your Net worth, whether your estate is large or small, it is important to have a basic estate plan in place. Such a plan ensures that your family’s present and future comfort and financial goals are met at all times.
Trust simply is a legal device allowing title, and possession of property/assets to be held, used and/or managed by one person, the Trustee for the benefit of one or more persons, the Beneficiaries.
Trust is one of the most flexible legal mechanisms available and useful for any purpose which is not illegal or against public policy. Trust is divided into Private Trust and Public Trust. Private Trust is also referred to as Living Trust.
A living trust is an instrument by which an owner of property, Settlor, during his life time, transfers his assets to a third party, called a Trustee, for the benefit of some named beneficiary. A Living trust provides lifetime and after-death property management. The Settlor during his lifetime can also be a beneficiary of the Trust.
The major feature of a Will is that it does not take effect until the death of the Testator. Another salient feature of a will is the Disposition of property, thus if a Will does not dispose of properties, it is not a Will. It may, however contain non-dispositive provisions, like the appointment of executors, trustees or guardians for minors
Claimants obtains Grant of Probate which may sometimes, be prolonged, especially if contested.
This is the process of organizing, managing and or disposing of the property of a person who died “Intestate” (i.e. without a Will). It also involves the process of executing a Will where the deceased left a will before his/her death.
For individuals who die without a Will, the process is much more complicated and cumbersome before their dependents can have access to their investments.Claimants will be subject to a lengthy process of obtaining “Letters of Administration” which may be frustrating, expensive and time consuming. During this process, dependents may not have access to the assets, or they may fall into the wrong hands. The process is also public in nature which does not guarantee the privacy of information.
Once you set up a Living Trust, it kicks off legally and assets transferred under it are technically removed from your estate at time of death and therefore not accessible to other adverse claimants, creditors etc. It is not subject to Probate or Letters of Administration process, nor is it a Public document, openly advertised like a Will or Letter of Administration. Rather only the Beneficiaries are entitled to its details/contents.
Some obvious advantages include the following:
Whilst it is most desirable to have a tidy financial plan for post-demise, we recognize the fact that many people die intestate and leave behind a lot of needless hardship for their dependents and loved ones. Hence, where a person dies intestate, our services include administering the estate for the benefit of the Dependents. We commence the process by obtaining Letters of Administration and ensure that the assets of the deceased are distributed amongst the rightful and lawful beneficiaries.
Reasons include:
The duties of STL Trustees are partly determined by law and partly included in the Trust Instrument. It would include: