The concept of a Trust is not unique to English Law or to those jurisdictions around the world which follow English Law and it has been suggested that roughly 50% of the independent wealth globally is held in one form of trust or another.
Trusts are recognised as one of the most flexible and versatile vehicle for holding and managing assets and it is therefore hardly surprising that many countries which have not inherited the English tradition of English Law, have none the less, opted to create their own trust legislation modelled closely on English standards.
Trust Funds are often and quite wrongly associated only with the wealthy. In reality a trust fund can be an effective financial tool for lots of people in a huge number of scenarios.
What is a Trust?
A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary or beneficiaries. The person creating a trust is called the grantor, donor or settlor.
When a trust is established, an individual or corporate entity is designated to oversee or manage the assets in the trust. This individual or entity is called a trustee. A trustee can be a professional with financial knowledge, or even a relative or loyal friend. It can also be a corporation.
There are pluses and minuses to each type of trustee. An individual trustee may provide a more personal touch. A corporate trustee may be less personal but provides experience, investment skills, permanence and impartiality. More than one trustee can be named by the grantor if he or she wishes.
For further information on different aspects of establishing a trust, visit one of the following links: