What is a trust?
A trust is a fiduciary arrangement through which a person (the settlor) transfers the legal title of his/her assets to another person or company (the trustee) who/which holds the assets on behalf of the beneficiary/beneficiaries. The legal title of the assets is vested in a trustee while the beneficial ownership is being vested in the beneficiary/beneficiaries. The trustee is responsible for managing and administering those assets in the best interests of the beneficiary/beneficiaries.
Main benefits of a trust
If the settler gets into financial difficulties, e.g. bankruptcy, divorce, etc., the assets placed in a trust are protected.
Well structured and administered trust can benefit substantial savings in income tax, capital gains tax, estate duty and inheritance tax.
The details of assets placed under a trust are confidential and can not be disclosed to the public.
Trust can provide a flexible way to make arrangement for the distribution of the settlor’s assets.