What is a Trust?

//What is a Trust?

At it’s core, a trust is a contract between the founder of the trust (sometimes called the donor), and the trustees, wherein they agree that the trustees will administer and look after a bundle of assets for the benefit of the beneficiaries. This is often known as a family trust.

Family trusts are described as inter vivos trusts; in other words, they are established during the lifetime of the planner or client.

Testamentary trusts (or will trusts) are established in a person’s will, and therefore only come into existence on the planner’s death.

Trusts have been, and still are, used very effectively as estate planning tools.

Do I need a Trust?

That depends very much on your circumstances, but in general clients establish trusts for one or more of the following reasons:-

  • Estate planning (to minimise Estate Duty)
  • Preserving wealth for future generations
  • Protecting and preserving assets for vulnerable family members
  • Protection of assets from creditors

For a more detailed discussion, please contact Hannah.



By | 2015-09-11T09:27:40+00:00 September 4th, 2015|Master Class - Trusts|0 Comments

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