What is is a trust?
Put at its most simplistic a Trust comes into existence when the title to assets is held by the legal owner (the Trustee) for the benefit (on Trust) for another party (the Beneficiary).
When can a trust be created?
Trusts can be created during a will maker’s lifetime with the most common example being a discretionary family trust.
What is a discretionary family trust / Discretionary testamentary trust?
This trust comes into existence, and can be utilised, as soon as the trust deed is signed and stamped. It is also possible to include a very similar trust structure in a will which enables the assets directed to be held in such structure to be so held for the beneficiaries rather than being distributed directly to the beneficiary and being exposed to claims by creditors and losing the benefits which are referred to in the section of this web site dealing with wills. This type of trust is commonly referred to as a discretionary testamentary trust and doesn’t commence operation and the will make has died and their estate has been administered.
Whilst the assets which form part of the capital of a trust created in a web site do not form part of the assets of the will maker’s estate the control of that structure does. The co-ordination of the control of the will maker’s non estate assets are part of the strategy which comprises the estate plan with that task being, in most cases, one of the roles of the deceased’s executors.