Trusts
A trust is not a legal structure, merely an arrangement. A trust is not incorporated.
It is;
“an agreement under which one person transfers title to specific property to another who agrees to hold or manage it for the benefit of a third person”.
Features
- They are relatively straightforward to set up, with legal advice.
- The governing document is the “trust deed”.
- The trust deed sets out terms under which individuals or organisations are given assets.
- The trust deed also normally lists the intended beneficiaries and the conditions under which the trust’s assets must be used.
- The structure is the body of trustees, which may be self-perpetuating.
- The trustees are not allowed to benefit personally.
- They hold a specific asset in trust, which may be money or physical property.
- Trustees have unlimited personal liability.
- Trusts are regulated according to the trust deed, some statute and case law.