CHAPTER 21

USING TRUSTS

‘Put not your trust in money, but put your money in trust.’

Oliver Wendell Holmes Sr, American physician, poet, professor, lecturer and author

A trust is a set of obligations and duties, splitting legal ownership and economic benefits. A person, known as the settlor, transfers the ownership of their assets to another party – a trustee. The trustee holds the assets for the benefit of a person, group of people, charity or organisation – the beneficiaries – without giving them full access to the assets for the time being. Because children (those aged under 18) cannot own assets in their own name, these will always be held in trust until at least age 18.

As well as holding assets for children, trusts are used for a number ...

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