Setting Up A Trust

What is a trust?

A trust is a legal document created to bind three parties, the settlor (owner of the assets), trustee and the beneficiaries. To setup a trust the owner has to transfer his asset ownership (real or personal, tangible or intangible) to the trustee whereby property is held by the trustee for the benefit of the beneficiaries.

 

Why someone sets up a trust?

 

A trust is setup to cater for different needs. Once a trust is created, the asset ownership lies with the trustee, which means there is a distinct separation of asset ownership between the settlor and trustee.

The common objectives of setting a trust are:

  • Asset distribution
  • Asset protection
  • Succession planning
  • Provision for unfortunate children
  • Charitable cause

 

Different type of trust 

  • Discretionary living trust
  • Testamentary trust
  • Asset protection trust
  • Charitable trust

 

 

Different type of trust serves different purpose, for details information, please consult our financial planner.

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