What Is A Trust
A Trust is where the creator of the Trust called the "Settlor" entrusts and transfers legal ownership of the assets to another person called the "Trustee" under a Trust Deed. The Trustee then acts for the benefit of the named Beneficiaries in the Trust Deed for a specified period of time.
A Trust is one of the most effective Financial planning tool to safeguard your assets for your loved ones. The Trust will contain specific instructions to manage, protect, preserve and distribute your assets. It will also outline the duties and responsibilities of the Trustee.
A Trust which can be used in many ways to benefit your loved ones is generally set up with various objectives such as;
- distributing assets quickly and without the hassle of applying for Grant of Probate or Letters of Administration;
- staggering the distribution of money and assets over a specified period of time;
- preserving the accumulated assets from breakup and loss in value for the enjoyment of successive generations;
- risk management to protect your assets against claims by creditors;
- supporting various family members for objectives such as education, maintenance, retirement, medical and for handicapped children.