The two benefits of a trust are tax avoidance and ensuring the passing of assets onto future generations by passing control to a neutral third party.
If the head of the family has access/control of the trust, then if they are irresponsible or just financially struggling they could treat it as just another available resource and they will likely raid it when money gets tight, just as they would if the money was sitting in their own bank account.
Most of the London landed families, the Cadogans, Westminsters actually have professional trustees to ensure their trusts are managed at arms length.
As I say the jewels are always the first to go when the apron strings get tight.
But if putting up a Trust one could still make sure that the Manager of the Trust is always the head of the Family also the next Duke, Earl or so. So the Fanily would still have Control over the Trust.
I was not aware that Prince Michael has placed his jewels in a Trust but it is certainly interesting but you should not assume they cannot be sold.
The jewels are now the property of a trust, a legal entity managed by trustees. They no longer belong to Prince Michael and will not form part of his estate and or be liable for the tax on his estate.
My guess is that he has probably taken this action to avoid inheritance tax. I suspect the jewels will still be sold by his trustees after Prince Michael and Princess Michael’s death, the proceeds paid out to the beneficiaries of the trust and the trust wound up. His heirs have no use of a jewellery collection that is probably worth a couple of million pounds and I don’t this branch of the Royal Family have so much money that they can sit on a jewellery collection that is left in a vault indefinitely.
I think the reason why so many noble houses have failed to put their jewels in Trusts are because jewels have historically been the first thing sold when financial trouble hits. Giving away your assets to a trust is just giving up your resources. If you have limitless resources it may be something to consider but even the likes of the super-rich Duke of Westminster have sold parts of their jewellery collection in the past decade. Same as the Duchess of Alba in Spain. With the massive increase in value in vintage jewellery, having a couple of strings of pearls or a tiara worn once every 2 decades is less appealing that a cheque for £500,000.
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