Trusts are commonly used in for family and business purposes. Some of the reasons for the creation of trusts are:
- asset protection
- the ability to split income amongst family members and related entities
- the ability to attach certain conditions to gifts
- to maintain control over key assets.
A trust is an equitable obligation binding a person (the trustee) to administer the property (trust property) under the terms of a trust deed for the benefit of the beneficiaries of the trust.
The four essential elements of any trust are:
- a trustee
- trust property
- a beneficiary
- an obligation in respect of trust property.
A trustee is essentially the person(s) or entity (often a company) who controls or administer the trust in accordance with the trust deed. The trust property could be any form of a property. Please note a trust does not exist without trust property. Thus, a trust essentially comprises a relationship under which a trustee holds property on behalf of a beneficiary and is under an obligation to deal with the trust property under the terms of the trust deed.
The following are different types of trusts that are available for your business or investment structures:
- Discretionary Trust
- Fixed Trust
- Unit Trust
- Hybrid Trust
There is no one size fits all. In order to determine which trust suits you best, you have to consider your personal circumstances. We have decades of experience dealing with simple and complex trust structure arrangements. Please reach out to us if you would like to find out whether trust structure might be best suited for your business and/or property investments.