A Trust Deed is an arrangement whereby property or assets are transferred from one person (the ‘settlor’) to another person (the ‘trustee’) to hold the property for the benefit of a specified list or class of persons (the ‘beneficiaries’). The practical advantages of a trust are gained from the distinction that is drawn between the formal or legal owner of property, the trustee, and those people that have the use or benefit of the property, the beneficiaries.
The Trust Deed sets out the terms and conditions upon which the trustees hold the trust assets and outlines the rights of the beneficiaries. It is vital that the settlor relinquishes control to the trustee and that the trustee remains independent and exercises proper control over the trust property in the interest of the beneficiaries.
Trusts are set up for a variety of reasons, including:
- succession planning
- estate planning
- wealth management
- providing for minors, incapacitated or vulnerable persons
- asset protection
- privacy and flexibility
- charitable donation
- circumventing forced heirship laws
- acting as ultimate holding of underlying family businesses.
At The Firm Trustees we provide a pool of knowledge and experience to assist you in navigating the complex terrain of effectively relinquishing control so that the trust created is barricaded against potential future claims. (Settlor reserved powers).