In some jurisdictions, trusts may be used to protect assets from participation in any divorce proceedings.
Asset protection in divorce proceedings.
There is a risk that when the economy is in a recession, all property will be used in a claim for compensation. Transferring assets to a trust provides protection against such claims and risks.
Maintaining family assets is often the most common reason for setting up trusts. For example, the director does not want to divide the family company between his children, but prefers that the nominee manager holds the shares of the family company on behalf of all his children.
A trust is a private agreement between the actual owner and the nominee manager. Therefore, data on the trust, owners and trust assets are kept confidential.