What Is A Trust?

WHAT IS A TRUST?

Trust is an important tool in the distribution of wealth and for asset protection. A Trust is basically a vehicle through which certain estates are managed for or on behalf of an individual or a group called beneficiary(ies). There are 3 parties involved in a Trust.

1) The settlor – person who sets up the Trust.

2) The Trustee – the person (corporation) who manage the Trust assets, and

3) The beneficiary(ies) – the person(s) who receives benefit(s) from the Trust.

A Trust can be created :

– Through a deed.

– Under a will.

– By operation of law.

WHY SET UP A TRUST ?

  • To protect your assets, investments and properties.
  • To guarantee your beneficiaries will receive all that is rightfully theirs according to your instructions.
  • To keep your assets safe from claimants and enjoy anonymity and confidentiality of ownership.

A private trust comes into being when a person (The Settlor) transfers the legal title of his assets to The Trustee with written instructions (The Trust Deed) as to how the asset (The Trust Property) is to be used for the benefit of the named persons (The Beneficiaries). A Trust is created by tailor making the trust deed to suit the needs of each settlor and (or) to suit the needs of the beneficiaries. 

HOW DOES A TRUST WORK?

The Trustee receives the assets from the Settlor and is legally obligated to hold and manage the assets for the enjoyment of the beneficiaries during the trust period set by the Settlor.It is commonly known as “Living Trust”

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