Trusts - our tips for you
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A trust is created when a person, called the settlor, transfers property to people known as trustees. A trust is a relationship between trustees and beneficiaries which imposes duties on the trustees to deal with the trust property in the interests of beneficiaries.
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Trusts can be set up for charitable purposes such as education or established specifically for the benefit of the members of a particular family. The terms of trusts can differ depending on the purpose for which a trust has been established.
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A settlor can choose to be a trustee of his or her own trust. In some circumstances, it is advisable also to have an unrelated trustee, who might be a family friend, the settlor’s lawyer, or a corporate trustee.
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If a couple’s relationship property has been transferred into trust and that transfer has the effect of defeating the rights of one of the partners under the Property (Relationships) Act, the court may order the other partner to compensate the partner whose rights are defeated.