Are Trusts Better for Succession or What Am I Missing?

You’ve spent a lifetime building something. Maybe it’s that plot of land your father left you, now buzzing with a thriving poultry farm. Maybe it’s the successful logistics company you started with a single van. You’ve poured your sweat, your dreams, your everything into it. It’s more than an asset; it’s your legacy. Your story.

But then, a quiet, nagging thought starts to creep in, usually late at night when the world is still. What happens next? What happens when you’re not here to steer the ship? You’ve heard whispers, from a friend, a cousin, a business associate about this thing called a ‘trust.’ They make it sound like a magic box that solves all problems. But is it? Or is it just another complicated, expensive concept that doesn’t quite fit our reality? 

That question, that genuine search for clarity, is where we need to start. Because when it comes to family and wealth, there’s no one-size-fits-all answer.         

It’s About More Than Money

Before we even get to the ‘what’ of a trust, we have to understand the ‘why.’ Succession planning isn’t really about money and property. It’s about people. It’s about ensuring your hard work becomes a foundation for your children’s dreams, not a reason for them to fight. It’s about protecting your spouse from being overwhelmed by complexities they were never involved in. It’s about making sure the business that employs fifty families doesn’t collapse because of a family dispute.

Many of us operate on a simple assumption: "I’ll write a will. It’ll say who gets what. Problem solved." Well, a will is a fantastic and essential first step. But it’s not the whole solution. A will is like telling someone the destination without giving them a map or a car. It directs what happens to your assets after you’re gone, but it has to go through a public, often lengthy, court process called probate. This is where things can get messy, expensive, and painfully public.

This is where the conversation about trusts begins.

What Exactly Is a Trust? 

Let’s ditch the dictionary definition. Think of a trust not as a thing, but as a relationship you create. You (the Settlor) decide to place some of your assets into a special, protected box. You then appoint someone you trust deeply (the Trustee) to be the guardian and manager of that box. Their job is to manage those assets not for their own benefit, but for the specific people you name (the Beneficiaries), like your children, your spouse, or even a charity.

The real power? You get to write the rulebook for this box. You decide the how, when, and why of it all.

Key parts of this relationship:

• The Settlor: That’s you. The one who creates the trust and puts the assets in.

• The Trustee: This could be a trusted family member, a lawyer, or a financial institution. Their job is to follow your rules to the letter.

• The Beneficiaries: The people you want to ultimately benefit from the assets.

The Reasons People Turn to Trusts

Okay, so it’s a relationship in a box. Why would you need one? Here’s where we get into the meat of it.

1. Avoiding the Public Spectacle of Probate.
Remember that court process for a will? Probate means your family’s private affairs, what you owned, who you owed, who got what, become public record. Anyone can go to the court and see the details. A trust, however, operates outside of this system. The transfer of assets happens privately, according to the rules you set. It’s faster, it’s quieter, and it keeps your family’s business exactly where it should be: within the family.

2. Managing the "When," Not Just the "What."
This is perhaps the biggest thing you might be missing. A will says, "My son gets my commercial property when I die." Full stop. But what if your son is 19? What if he’s more interested in spending than building? A trust lets you say, "My son gets the commercial property, but the Trustee will manage the rental income until he turns 25. At 25, he gets half the capital. At 30, he gets full control, provided he has completed a business management course."

You’re not just giving an asset; you’re giving a framework for responsibility. You’re protecting the asset from being squandered due to youth or inexperience.

3. Providing for Special Circumstances.
Do you have a child with special needs who will require lifelong care? A direct inheritance could disrupt their eligibility for government aid programs. A carefully crafted Special Needs Trust can provide for their supplemental needs, extra comforts, better care, educational trips, without affecting their access to essential public benefits. It’s a way to ensure your care for them continues seamlessly.

4. Keeping the Family Business Intact.
Imagine a thriving family business with three children. One is actively involved and brilliant at running it. The other two are passionate about their careers in medicine and art. A simple will that divides the business equally between them could be a disaster. The active child might be forced to answer to siblings who don’t understand the business, leading to conflict and poor decisions that could sink the company.

A trust can be structured so that the active child gets control and majority of the business income, while the other children receive a fair share of the value through other assets or a fixed income from the business. This preserves the operating business and treats all children fairly, according to their roles and interests.

But It’s Not All Perfect

So, are trusts better for succession? They can be powerful tools, but they are not fairy tales. They come with their own set of realities.

• Cost and Complexity: Setting up a trust is generally more expensive and complex than writing a simple will. It’s not a do-it-yourself project. You need a good legal advisor.

• The Hassle of "Funding" the Trust: A trust is empty until you put assets into it. This means you have to legally change the ownership of your properties, bank accounts, and investments from your name to the name of the trust. This is a crucial step many people forget, leaving an empty, useless trust behind.

• Choosing the Right Trustee: This is a massive decision. Appointing a family member could lead to conflict or burden them with a complex job they’re not equipped for. A corporate trustee (like a bank’s trust department) is professional but will charge fees. It’s a balancing act.

A Simple Will vs. A Trust: A Quick Comparison

You May Ask

How much does it cost to set up a trust?
There’s no fixed price, as it depends entirely on the complexity of your assets and the rules you want to create. It will cost significantly more than a simple will. Think of it as an investment in preventing future family conflict and ensuring your wishes are carried out exactly as you intend. The cost of not doing it could be far higher in the long run.

Can I set up a trust myself?
It is highly, highly discouraged. The language and legal formalities are precise. A small mistake in drafting could completely invalidate the trust or create a rule that is interpreted in a way you never intended. This is one area where professional guidance is not a luxury; it’s a necessity.

What happens if I don’t do any planning at all?
If you pass away without a will (called dying “intestate”), the laws of your country will decide who gets your assets. These default laws often split assets in a standardized way between a spouse and children, which may not reflect your wishes at all. It guarantees a long, expensive, and public court process for your grieving family. It is the least desirable outcome for everyone involved.

Finding Your Answer

So, are trusts better for succession? The truth is, they are a superior tool for many succession goals, particularly when you want privacy, control from beyond the grave, and protection for vulnerable beneficiaries. But the better question is: is a trust better for your succession plan?

What you might be missing isn’t necessarily the knowledge of a trust, but a deep, honest conversation about what you truly want your legacy to accomplish. It’s about moving from "who gets what" to "how can my life’s work continue to provide, protect, and empower my family long after I’m gone."

Start there. Have that conversation with yourself, with your spouse. Then, take that clarity to a trusted legal advisor. Explain your family dynamics, your assets, and your fears. They can then tell you if a trust, a will, or a combination of both is the right vehicle for your journey. Your legacy is your masterpiece. It deserves a frame that will protect it for generations to come.