A trust is a legal arrangement whereby a person (the settlor/grantor) settles assets into the custody of a trustee, who in turn manages and administers the assets to the benefit of the trust beneficiaries. Ultimately the trust concept legally separates ownership and beneficial interest in the trust property.
Careful planning is essential to implement the correct trust structure. Upon the proper settlement of a (discretionary asset protection) trust, ownership of and title to the assets are transferred to the trustee that henceforth owns the assets (in their capacity as trustee of the trust), whilst the beneficiary obtains an equitable right to the trust property referred to as beneficial interest. Thereafter, the assets no longer form part of the Settlor’s estate and is therefore out of reach of creditors. Likewise, upon the Settlor’s death or for taxation purposes, the assets previously settled upon trust do not fall within his or her estate and is not subject to probate or taxes.
Careful planning is essential to implement the correct trust structure. Upon the proper settlement of a (discretionary asset protection) trust, ownership of and title to the assets are transferred to the trustee that henceforth owns the assets (in their capacity as trustee of the trust), whilst the beneficiary obtains an equitable right to the trust property referred to as beneficial interest. Thereafter, the assets no longer form part of the Settlor’s estate and is therefore out of reach of creditors. Likewise, upon the Settlor’s death or for taxation purposes, the assets previously settled upon trust do not fall within his or her estate and is not subject to probate or taxes.
