Trusts
What is a Trust?
A trust is a way of putting aside something of value (the asset) for the benefit of other people without giving them full control over it. It is established where there is a transfer of an asset by a person (the settlor) to other people (the trustees) who must hold and administer the gifted asset (the trust fund) for the benefit of specified people (the beneficiaries) in accordance with the terms of the trust.
Who are the parties to a trust?
- Settlor - The settlor(s) is the person who creates the trust by transferring property (e.g. life policy, shares etc) into it.
- Beneficiary - The beneficiary, as the name suggests, is the person beneficially entitled to the trust property.
- Trustee - The trustee(s) is the individual who has a duty to look after the trust property on behalf the beneficiary.
