ELEMENTS

OF A TRUST

The Trust Deed

This legal and private agreement between the Settlor and the Trustee may be constructed in many ways to reflect the requirements and concerns of the Settlor. Although the provisions in a Trust Deed will vary from case to case, its fundamental structure comprises of :

the Settlor

the description of Trust Assets

the Trustee’s powers, discretions and restrictions

the description of Trust Assets

the provisions of the Trust

the nomination of the Beneficiaries

The Trustee

The Trustee is the person or entity into whose name ownership of the Settlor’s assets have been transferred. The Trustee has an obligation to ensure that the provisions of the Trust are executed and the Beneficiaries’ interests protected. There are strict legal requirements governing the conduct of the Trustees. The Trustee can be dismissed and replaced by a new Trustee in accordance with the terms of the Trust Deed or the governing laws of the Trust. Trustees have a legal responsibility to protect the interests of the Beneficiaries, protect the Trust Assets and comply with the provisions of the Trust Deed. In certain circumstances, a Protector may also be appointed to oversee and ensure the wishes of the Settlor are counter checked and approved to provide an additional protection in the administration of the Trust assets.

The Settlor

The Settlor is the person who transfers the legal ownership of his assets to the Trustee and gives guidance as to how the Trust Assets should be managed or distributed for the benefit of the designated beneficiaries. The Settlor may also be included as a Beneficiary.

The Beneficiaries

The Beneficiaries are the persons who may benefit under the terms of the Trust Deed. They may be named specifically in the Trust Deed or through a written notification of the wishes of the Settlor, sometimes called the Letter of Wishes.

The Protector

A Trust Deed can incorporate the provision of a Protector who is someone well known to the Settlor or Beneficiaries, and who is fully trusted by them. The powers of the Protector are defined in the Deed and can vary but, normally include supervision and control of distribution of funds. The Protector can provide additional comfort and assurance to the Settlor.

TYPES OF TRUST ARRANGEMENTS

Depending on the needs and circumstances of the clients, there are three main types of Trust structures available for various purposes.

1 Discretionary Trust

2 Accumulation and Maintenance Trust

3 Fixed Interest Trust

The Discretionary Trust is the type most usually employed as it provides more flexibility and protection. However, the most appropriate type of Trust will be used.

ELEMENTS

The Trust Deed

This legal and private agreement between the Settlor and the Trustee may be constructed in many ways to reflect the requirements and concerns of the Settlor. Although the provisions in a Trust Deed will vary from case to case, its fundamental structure comprises of :

The Trustee

The Settlor

​The Settlor is the person who transfers the legal ownership of his assets to the Trustee and gives guidance as to how the Trust Assets should be managed or distributed for the benefit of the designated beneficiaries. The Settlor may also be included as a Beneficiary.

The Beneficiaries

The Beneficiaries are the persons who may benefit under the terms of the Trust Deed. They may be named specifically in the Trust Deed or through a written notification of the wishes of the Settlor, sometimes called the Letter of Wishes.

The Protector

1

Discretionary Trust

2

Accumulation and Maintenance Trust

3

Fixed Interest Trust

The Settlor is the person who transfers the legal ownership of his assets to the Trustee and gives guidance as to how the Trust Assets should be managed or distributed for the benefit of the designated beneficiaries. The Settlor may also be included as a Beneficiary.