What is a Trust?
Under common law, a Trust is not a company nor does it have any separate legal existence. The word "Trust" is in fact a convenient description of the personal relationship that exists between a settlor, a trustee and a beneficiary. A Trust relationship is created whenever one person (the "Settlor") gives property to another (the "Trustee") to be held in trust for the benefit of named beneficiaries. This relationship is usually created by a written deed. The fundamental concept of a Trust is that assets are transferred into the ownership of the Trustee and are no longer owned personally by the Settlor.
Why are Trust used?
Trusts were essentially devised for estate planning purposes. Assets can be placed in trust for named beneficiaries (even unborn ones) with a view to them inheriting at some later stage. They are also used as asset preservation vehicles. For instance, where there are spendthrift beneficiaries who might otherwise dispose of inherited property
