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FAMILY FINANCES

In parents we trust Add to ...

If you want to help your parents out by setting up a trust, here is some advice from the experts:

• Talk to your parents

Explain how a trust can help both the giver and the recipient. Get them comfortable talking about money and being willing to reveal the necessary financial information.

• Talk to your partners

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If you're not in business alone, reassure your stakeholders the trust will not negatively affect the business..

Work out the numbers

Make sure that the tax savings outweigh the costs. Also consider whether a trust is worth it, depending on whether you want to hand over money regularly or irregularly.

• Think long term

Consider unborn babies, parents' deaths, business problems and other scenarios when setting up the terms of a trust.

• Review annually

Every year, usually when you do your taxes, reassess how much money you're moving through the trust and ensure it's beneficial for the business, you and your parents.

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