Chapter 18

Question 1

What is a trust?

Answer 1

A trust is a legal relationship created in a trust deed (otherwise known as a trust instrument). The relationship is created by the founder (donor or settlor), who intentionally places assets under the control of another (the trustee) for the benefit of third persons (the beneficiaries).

Question 2

Ordinary trust

Answer 2

The ownership and control of trust assets lies with the trustees

Question 3

Bewind trust

Answer 3

The beneficiary or beneficiaries have ownership of trust assets, but these are under the control of the trustees