This Advisory provides an overview of the legal concept of a
trust, including its role in family wealth preservation and
management. It also describes interesting tax-effective strategies
for using a trust which you may find relevant to your own
situation.
GENERAL TRUST PRINCIPLES
What is a Trust?
A trust is a type of relationship. The key element of a trust is
that title to property is transferred to a person (the
"trustee") who has a legal obligation to hold the
property for the benefit of others (the
"beneficiaries").
Creation of a Trust
To establish a valid trust, the person who transfers the
property must intend it be held for the benefit of other persons.
The trust comes into existence when the property is transferred to
the trustee. The three "certainties" or requirements in
order to establish a trust are (i) the intention to create a trust
(ii) property held on trust and (iii) identifiable
beneficiaries.
