How is a trust created?
The normal way to create a trust is by deed, often described as a trust deed, or a settlement deed or a declaration of trust.
The person creating the trust can be described as the settlor, the grantor or the donor.
The deed must name trustees, who hold and manage the trust assets (the trust fund or settlement fund) and administer the trust. The beneficiaries are the individuals also named in the trust deed and for whom the trust is set up.
A well drawn modern trust deed normally contains comprehensive powers to allow trustees to manage and administer a trust effectively while having regard to the overall aims to the trust.
Once the trust deed is in place, assets can be transferred to the trustees for them to hold subject to the terms of the deed. Normally, assets can also be purchased for the trust at any time.
It is important to consider all of the legal, practical and tax implications before creating a trust. At Hart Brown, our experienced team will guide you through the implications and help you to set up a trust that best suits your objectives.