One way to protect your luxury investments is to set up a trust or a foundation. In a trust/foundation, a trustee/ counsel member is given the authority to hold or manage an asset on behalf of the beneficiary.
Why set up a trust to protect your luxury investments?
This is a more comprehensive way of protecting your assets as compared to buying insurance because – while insurers pay out in the event of an unfortunate circumstance – a trust can create longevity, in that it can manage the assets as well as keep them in the family.
“This allows our clients to enjoy the collection and utilise alternative assets to leverage their portfolio and secure lending,” adds Karen O’Hanlon – Managing Director of First Names Group, Singapore.
The services afforded by setting up a trust/foundation are pretty extensive. For example, art collectors who like to exhibit their collection in different countries may find that a trustee will not only protect their collection throughout the entire process, but also manage it on their behalf.
“A trustee or foundation provider such as First Names Group can deal with the gallery, manage the transportation of the collection and help to insure it – which allows for manoeuvrability of the collection,” O’Hanlon points out.