Trusts & Companies
Understanding the Role and Purpose of a Trust
A trust serves a fundamental purpose in safeguarding the interests of your dependants during periods when they may be unable to protect these interests independently. Engaging an attorney to assist in establishing a trust is a common and advisable practice. A trust, as a legal entity, holds the capacity to own property, receive donations, and inherit assets from your estate upon your passing.
The inherent security of a trust stems from the decision-making authority vested in the trustees, individuals whom you appoint when creating the trust. These trustees play a pivotal role in executing the trust’s directives, ensuring the protection and management of assets for the benefit of the designated beneficiaries. What distinguishes a trust’s security is that beneficiaries can only access their entitlements at the specified age or time delineated in the Will. This structured approach provides a robust framework for the responsible and controlled distribution of assets, aligning with your intentions and offering protection for your dependants.
Types of Trusts
There are two primary types of trusts, each serving distinct purposes:
- Inter Vivos Trust:
- Also known as a trust between the living or a group of people.
- Established for the benefit of selected beneficiaries during the lifetime of the trust creator.
- Enables the trust creator to manage and distribute assets for the ongoing benefit of the chosen beneficiaries.
- Testamentary Trust:
- Formed through a stipulation or provision within a will.
- Designed to benefit the heirs of the testator, coming into effect upon the testator’s demise.
- Provides a structured framework for the distribution of assets according to the testator’s wishes, ensuring the long-term welfare of the designated heirs.
These two trust types offer distinct advantages and cater to different scenarios, allowing individuals to tailor their estate planning strategies based on their specific needs and preferences. Whether it involves managing assets during one’s lifetime or implementing posthumous directives, trusts provide a versatile and effective tool for ensuring the secure and organized distribution of assets to beneficiaries.
Ensuring the Legitimacy of a Trust
The establishment and management of a trust, along with the responsibilities of trustees, involve adherence to specific processes and stringent requirements. Our expertise enables us to guide you and/or your appointed trustees, ensuring that all matters are addressed in accordance with the prevailing best practices. By relying on our guidance, you can rest assured that the legal requirements for a valid trust are meticulously met, establishing a solid foundation for the trust’s legitimacy and effective operation. Trust in our expertise to navigate the intricacies of trust creation and management, safeguarding your interests and adhering to the highest standards of legal practice.