Could an Increase in the Use of Family Trusts Cause Conflicts

Peter Jaskiewicz discusses family trusts and how they can be used to perpetuate family interests.

I believe that family trust, and many other external services that families can draw upon are huge opportunities, but sometimes also a threat. They are mainly a threat if people do not inform themselves about what they really mean, and unfortunately that happens, but they are an opportunity because every family is unique and every family has unique challenges, and based on what the vision is and what the ideas are, you can’t expect a family member to be the lawyer, accountant, investment banker, psychologist and I don’t know, mediator. I’ve never seen a list of family members like that. However there are all these professions out there with particular services that you can draw upon and these people can help you realize your vision for the family and for the business and I believe there is a huge opportunity. So depending on the context in which you are, a trust might be a great thing to do. So trusts have been criticized for people who put in the last word that trusts will be created and the family will lose all its power over resources and the particular reasons why people do so, and is was sad that it’s basically, that money, because it’s kind of handcuffed money, they family can’t do anything about it. So that might be a negative example. But a positive example might be that if a family realizes it’s a good idea to create a trust, to perpetuate family interests in the future and there might even be tax advantages of doing so, and they all agree upon that and move forward, it could be a great idea. So depending on the context, and being proactive about things and it should be considered, yes.