Trusts are emerging as the most favourable planning process to protect wealth, but it can be rather complex to understand.
A trust is the process of transferring assets to trustees (a group of people) to protect and hold for others. There are three parties that make up a trust, and they are:
- A Settlor – The person who initiates the trust
- A Trustee – The individual entrusted to hold the assets for beneficiaries
- Beneficiary – The person(s) who will benefit from the trust