A trust allows you (the settlor) to entrust your assets to the trustees for the benefit of your beneficiaries. It is the responsibility of the trustees to take control of, manage, and ultimately distribute the assets to your beneficiaries.
There are generally three reasons you may consider creating a trust:
- To control how and when your assets are distributed and to whom. This can help avoid probate and forced heirship on your death.
- To mitigate your potential liability to certain taxes, such as income tax, capital gains tax and inheritance tax.
- To ensure that plans for your estate adapt to potential changes in your family circumstances.