It is very popular today for people to plan ahead for their financial future and the financial future of those they wish to inherit from them. Trusts are a way the law allows for personal property to become the property of a “trust”, which is a legal entity similar to a corporation. The trustee is the person designated by the founder of the trust to oversee the trust.

Trusts allow you to avoid probate and gift taxes upon death. This makes the handling of your estate simpler, quicker, and less expensive. Your heirs will receive their inheritance in a timely manner, and with the lowest possible tax burden. By planning ahead via a trust and will, it is possible to ensure your wishes are carried out, and that taxes and legal costs are minimised.

Family trusts are easy to understand. The person who forms the trust and places something into it (such as money or real estate) is the “settlor”. The money or realty that is placed into the trust is called the trust “res” or trust property. A person, law firm, or special company that is empowered by the settlor to oversee the operation of the trust is called the “trustee”. The settlor can serve as their own trustee, if they wish.