Together, towards a secure future!
Allegiance Empower has been conceptualize with a thought of creating an understanding amongst investors and business owners about how a small amount of investment for substantial period of time can create fortunes for your dear ones.
At Family Level:
It is a multigenerational planning approach that focuses on smoother creation / transitions of wealth, less family discord, and the effective transition of family values and leadership.
- This will help in passing on the legacy for generations to come – consciously shape the way that you will be remembered by the family members.
- Create substantial wealth for family without impacting existing lifestyle and list down the process of distribution of wealth to maintain harmony in the family members
- Creating moral & spiritual values in coming generations by creating ethical will
- Social causes and philanthropy – creating a foundation is the ultimate in philanthropic giving. It also allows you to involve future generations in your gifting. Your children, for instance, could lead the foundation into the future, using principles and guidelines you establish now.
WHY ALLEGIANCE EMPOWERMENT?
Allegiance Empower not only focuses on wealth transition at family level but also design plans for business owners to offer benefits amongst his/her key employees in the form of retirement/ pension plans, protection cover, education assistance etc. this will help retaining key employees through employee satisfaction.
Private Trust
Worldwide, private trusts are widely used as an effective tool for estate planning, succession planning and long term employee retention planning. High net worth individuals and organizations set-up private trusts for smooth inter-generation transfer of wealth and/or long term benefits to employees.
Benefits of setting up a Private Trust:
- No probate requirement
- Protect the interest of current and future generations
- Distribution of assets according to individual wishes or needs, rather than by statutory disposition
- Consolidation of assets
- Wealth preservation
- Administration and management of the trust fund
- Avoid conflict amongst beneficiaries
- Superior structure than a Will
- Address philanthropic needs
- Provide for incapacity of the settlor
- Channel end usage of assets
- Employee well being and satisfaction through long term deferred benefit plans.
Who should create a trust
- Promoters / Business owners who wish to segregate management, control and economic interest
- Indian residents who have beneficiaries residing abroad
- Parents of minor children – managing and preserving wealth for children who are too young or financially incompetent
- Those having special child
- Families desirous of setting up multi-generational trusts
- Those intending to contribute towards philanthropy
- Families looking at rainy day planning
- Those looking at creating life trust for children – protection against failing marriages, other uncertainties in life
- Organizations / employers looking for creating separate fund for retention of key employees through long term deferred benefit plans.
Trust Administration of a Corporate Trustee
Scope of work for trusteeship service
- Managing and administering assets under the trust
- Maintaining accurate and detailed records
- Acting in the best interests of the beneficiaries
- Implementing the directions of the settlor
- Recommending investment strategies that serve the best interests of the trust and its beneficiaries
- Distributing assets to the beneficiaries in the manner provided by the settlor
- Setting up Trust and appointment of trustees and beneficiaries
- Assistance in Will drafting and registration
- Preparing and filing all required federal and state tax returns
- Gifting strategies to family members and charities
- Insurance planning to help protect assets
- Understanding (and remaining current with) complex, ever-changing tax code and trust administration laws.
Benefits of Appointing a Corporate Trustee
- Professional approachInvest money for your future
- Operational EfficiencyThe infrastructure and resources
- ObjectivityAppointing a corporate trustee
- Better Control Over AssetsInvest the trust assets
- TrustworthinessBound by a fiduciary
Professional approach
A corporate trustee employs a team of professionals whose areas of expertise include investment management, financial services, trust administration, estate planning, and tax strategy.
Operational Efficiency
They have the infrastructure and resources available to undertake and streamline the significant record keeping tasks and obligations related to efficient and compliant trust administration.
Objectivity
Every family has its own unique dynamic, one that ebbs and flows over time. Appointing a corporate trustee can help minimize the potential for personal bias or changing family dynamics to influence trust-related decisions.
Better Control Over Assets
Corporate trustee will invest the trust assets prudently and protect them from predators and tax inefficiencies.
Trustworthiness
A corporate trustee is bound by a fiduciary obligation to uphold and abide by the specific terms and provisions outlined in the trust document. They have the resources and capacity to ensure continuity of care as trustee throughout the trust’s full lifecycle.
Power of Compounding
How a small amount invested in a planned way through Private Trust can create wealth for multi-generation. The table below shows how the power of compounding will help in creating substantial wealth over a period of several years with an initial investment of Rs. 5 Lac
Expected Returns
| 5% | 8% | 10% | 12% | 15% | |
| 5 | 6,38,141 | 7,34,664 | 8,05,255 | 8,81,171 | 10,05,679 |
| 10 | 8,14,447 | 10,79,462 | 12,96,871 | 15,52,924 | 20,22,779 |
| 15 | 10,39,464 | 15,86,085 | 20,88,624 | 27,36,783 | 40,68,531 |
| 20 | 13,26,649 | 23,30,479 | 33,63,750 | 48,23,147 | 81,83,269 |
| 25 | 16,93,177 | 34,24,238 | 54,17,353 | 85,00,032 | 1,64,59,476 |
| 30 | 21,60,971 | 50,31,328 | 87,24,701 | 1,49,79,961 | 3,31,05,886 |
| 35 | 27,58,008 | 73,92,672 | 1,40,51,218 | 2,63,99,810 | 6,65,87,762 |
| 40 | 35,19,994 | 1,08,62,261 | 2,26,29,628 | 4,65,25,485 | 13,39,31,773 |
| 45 | 44,92,504 | 1,59,60,225 | 3,64,45,242 | 8,19,93,802 | 26,93,84,634 |
| 50 | 57,33,700 | 2,34,50,806 | 5,86,95,426 | 14,45,01,095 | 54,18,28,721 |
| 55 | 73,17,815 | 3,44,56,928 | 9,45,29,571 | 25,46,60,303 | 1,08,98,11,092 |
| 60 | 93,39,593 | 5,06,28,532 | 15,22,40,820 | 44,87,98,467 | 2,19,19,99,373 |
| 65 | 1,19,19,950 | 7,43,89,923 | 24,51,85,363 | 79,09,36,245 | 4,40,88,93,694 |
| 70 | 1,52,13,213 | 10,93,03,203 | 39,48,73,478 | 1,39,38,99,914 | 8,86,78,60,019 |
The expected return for an investment period of more than 50 years is 12~15%.