Private trusts are widely adopted as efficient means of wealth
succession. It entails a fiduciary relationship, whereby a person
termed the "trust creator" or "settlor",
entrusts another person termed the "trustee", with
property (which may be tangible or intangible) to be managed for
the benefit of select persons termed "beneficiaries", in
accordance with certain terms stated in a trust deed. In other
words, in a private trust, a tripartite relationship exists between
the trust creator, the trustee and the beneficiaries.
It is common to have a protector as a party in private trust
structures. A protector is a person that monitors the activities of
the trustee in the interest of the beneficiaries. The obligation
and duties of the protector are usually defined in the trust
deed.
