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 vehicles for holding and managing assets.
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.
A Trust is a device by which Trustees can hold 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.
The fact that Trusts have existed as a vehicle for many centuries is a testament to its flexibility and usefulness in all types of tax or succession planning. Today's concept of Trusts is so flexible that they can be used, and are used, in a wide variety of ways and for many different purposes.
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Turner Little and its affiliates do not provide tax, legal or accounting advice. Material on this page has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.