A quick guide to the basics of a Trust
You may have heard people talk about setting up a Trust or being a Trustee - but what does it all mean?
*Always seek specialist advice that is tailored to your situation and risks.
The below information is available to download as a PDF:
A trust is a fiduciary relationship established under the law of equity, where one party, known as the trustee, holds and manages property for the benefit of another party, known as the beneficiary. The trustee has legal ownership of the trust property but must act in accordance with the terms of the trust and for the benefit of the beneficiaries.
Key elements of a trust include:
Trustee: The individual or entity that holds and manages the trust property.
Beneficiary: The individual or entity for whose benefit the trust property is held.
Settlor: The person or entity that establishes the trust and transfers property to it
Trust Deed: The document that outlines the terms and conditions of the trust, including the trustee's powers and duties.
Trusts can be created in several ways:
Express Trust: Created intentionally by the settlor, often through a trust deed.
Implied or Presumed Trust: Arises from the circumstances, even if not explicitly stated.
Constructive Trust: Imposed by law to address situations where holding property would be unjust.
Trusts are not separate legal entities but are relationships recognized and enforced by equity. The Trustee must manage the trust property in accordance with the trust deed and the Trusts Act 2019, ensuring that the real benefit of the property accrues to the beneficiaries.
Disclaimer
This article is for informational purposes only and should not replace specific tax advice. For personalised advice please contact us.
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