In recent years there has been an increase in focus by individuals on asset protection. This has occurred for various reasons including significant growth in wealth, an increase in “loan” assistance provided to children, steadily increasing divorce and re-marriage rates, and an increase in legal obligations imposed on those operating businesses and acting as officers of companies.

As the baby-boomers mature and contemplate their succession plans, they are also mindful to ensure that their hard-earned assets do not end up in the wrong hands upon their death.  The use of testamentary trusts has escalated in the last decade or more, in large part due to the asset protection (against creditors and relationship breakdowns) of the next generation, as well as the favourable income taxation benefits they provide.