What is a trust and how can it be used? A trust is a legal arrangement in which one party, known as the Settlor (or Grantor), creates a trust and transfers assets into it. These assets are then managed by a Trustee, who holds a legal duty to administer them for the benefit of one or more Beneficiaries, according to the terms set out in the trust deed and governed by applicable trust law.
Depending upon the purpose, common types of trust used as a succession planning tool include:
- Revocable Trust which can be altered or revoked during the settlor’s lifetime. Useful for avoiding probate
- Irrevocable Trust which cannot be changed once established. Can offer stronger asset protection
- Will Trustscreated through a person’s will and activated upon death. Common for managing inheritance for minors or dependents
Trusts allow individuals to control how, when and to whom assets are distributed after their death. They are generally used for asset protection, investment holding and provision for vulnerable beneficiaries such as minors or individuals with specific needs.
Succession planning is a common topic across many areas of life — but what does it truly mean in a fiduciary sense?
For families, the core concern is ensuring that wealth and assets remain within the family after the death of the wealth creator. In this context, a trust is one of the most effective tools for long-term succession planning. It allows for assets to be preserved and passed down through generations, particularly younger generations who may lack the life experience and financial literacy to manage large sums of money wisely, while protecting them from external claims and unnecessary erosion.
The importance of proper succession planning is well recognised by leading professional bodies. The Society of Trust and Estate Practitioners (STEP) reports that over 69% of family business owners do not have a clear plan in place for the transfer of their assets upon death. This lack of foresight can lead to significant financial, legal, and emotional challenges for families.
Trusts are often misunderstood; yet they remain invaluable instruments for financial planning, asset protection, and estate management. Succession planning goes far beyond merely transferring assets — it is about preserving a legacy. When implemented thoughtfully, trusts offer a framework for maintaining family wealth, minimizing tax exposure, and ensuring continuity across generations.
A well-structured estate plan — often anchored by a trust — also provides clarity and reduces the risk of disputes, especially during times of grief and transition.
How can Boston Family Office Help?
At Boston, we understand that every family’s circumstances and values are unique. Our experienced team is here to work collaboratively with you and your advisors to design and implement a structure that supports your family’s long-term security, cohesion, and success.
We are ideally positioned to assist family businesses that wish to expand internationally. We are a multi-jurisdictional fiduciary service provider with offices in the Isle of Man, Jersey, Malta and the UK that implement tailored governance solutions to clients.
Should you wish you to discuss the topic in more detail or you are interested to hear how Boston Multi Family Office can assist you, please contact Richard Goodridge – rgoodridge@bostonmfo.com.