What is a Trust?

Trusts have been around for centuries and their uses have evolved with time.

Stated simply, a trust is an arrangement by which the owner of assets known as the settlor:-

• Passes legal ownership of assets to the trustee
• Who administers them subject to the defined terms of the Trust Deed and according to the governing law
• For the benefit of beneficiaries who may include the settlor

The most common form of trust is the Discretionary Trust. This enables assets to be used for the benefit of the beneficiaries in a manner and extent decided upon by the trustee at its discretion although taking account of the wishes of the settlor. In this way none of the beneficiaries has a legal right to benefit but merely a right to be considered for benefit thus providing maximum flexibility.