Introducing Trusts

A trust is a legal relationship created by means of a Trust Settlement or Agreement, which is evidenced by a written document and established under the Laws of the relevant jurisdiction. The 'settlor' of the trust would transfer ownership of assets to the trustees. Trustees are appointed in terms of the Trust Settlement to administer the assets of the trust for and on behalf of 'beneficiaries'.

The most common use of trusts is for the protection of assets, deferment or mitigation of tax, creation/maintaining anonymity and inheritance planning.

A Trust Protector may be appointed to represent the beneficiaries and to guide the trustees in the exercise of their discretion and in accordance with the Trust Settlement. There is no legal requirement in certain jurisdictions to register trusts. Thus the identity of the trust, its settlor and beneficiaries remain intact.

In most circumstances, a trust is not liable to any form of taxation provided all the beneficiaries are not resident where the trust is located.

What assets may be transferred into a trust?

• Stocks and shares in quoted and unquoted companies
• Investment portfolios
• Real and intellectual property
• Bank deposits
• Property
• Life assurance policies

At Pryce Warner, we understand that your wealth is precious - it provides financial security for you and those you care for. It only natural that you want to do all you can to manage, protect and enhance the financial assets you accumulate, not only now but also in the future.

When considering setting up a trust, be sure to review your needs and to carefully consider your future plans, that way we can best advise you as to whether or not a trust would work for you, and if so, what sort of trust would be of the maximum benefit.

If you aren’t sure if a trust might be right for you, take a look at the rest of our Trusts and Foundations section, it explains everything you need to know and has answers to the most common questions people have regarding trusts.