A trust, in common law legal systems, is an arrangement whereby property, including tangible and intangible, is managed by a person (or persons) for the benefit of another.
A trust is created by a settlor. The settlor entrusts some or all of their property to people of their choice - the trustees.
The trustees hold legal title to the trust’s property, but they are obliged to hold the property for the benefit of one or more individuals or organisations (the beneficiary), usually specified by the settlor. The trustees owe a fiduciary duty to the beneficiaries.
A trust is governed by the terms of a trust document, which is usually written and often set out in deed form. It is also governed by local law. The trustee is obliged to administer the trust in accordance with both the terms of the trust document and the governing law.
Please check back here again soon, as we will be publishing further information about various types of trusts, their uses and the roles of the different parties associated with trusts such as settlors, beneficiaries and trustees.