Trust

An entity created for the purpose of conserving and protecting assets for the benefit of a third party, known as the beneficiary. This common law legal structure is used to legally separate the owner from his assets by handing over control to another party, known as a trustee.

A trust must have a settlor or a person who establishes the trust to take over the ownership of assets. A beneficiary is the intended owner of the assets placed in the trust. The trustee is an individual or corporation to which legal ownership of the assets is transferred. A trustee must supervise, manage, invest and distribute the assets in accordance with the trust deed. The trust deed states the terms and conditions under which the trustee operates. The protector is a guardian who ensures that trustees carry out the wishes of the settlor.