Learning
Trusts
Settlor, trustee, beneficiary — and real duties.
A trust separates legal ownership from beneficial ownership. The settlor puts property in, the trustee holds and manages it, the beneficiary benefits from it.
For a trust to be valid it needs three certainties: intention, subject matter and objects. Trustees owe fiduciary duties and can be personally liable for breaching them.
Trusts have tax consequences and often registration requirements. They are a legitimate planning tool, not a shield against creditors or courts.
Key points
- Three certainties: intention, subject matter, objects.
- Trustees owe real, enforceable duties.
- Transfers to defeat creditors can be reversed.
- Get professional advice before creating one.
You’re safe. You’re capable. You’re legally unstoppable.