They can be used:
- For asset protection purposes, so that assets are not exposed if someone goes bankrupt.
- To set aside money for a particular purpose. Such as for your grandchildren when they come of age or to support a special needs person who cannot manage money themselves.
- To disperse the income from income generating assets to various members of the family who can most benefit from the money. In doing so the amount of tax paid on that income may be reduced.
- To operate a business as an alternate to, or used in conjunction with, a company. The family trust may own the shares in your own company or companies allowing the dividends to flow into the trust where they are dispersed to the beneficiaries.