Trusts

A trust is a legal arrangment where a person or corporation holds property for the benefit of one or more persons.

'Property' includes things such as:

• cash
• assets
• real estate and
• investments

Reasons to have a trust

The most common reasons why people create trusts are:

1. To protect assets

2. For tax reasons

Once an asset becomes a trust asset, it becomes the property of the trust - it is not owned by the settlor (the person who creates the trust arrangement) or the trustee or the beneficiaries. That way, if anyone falls into financial difficulty or becomes involved in court proceedings, the assets of the trust are protected (subject to some exceptions).

Colavitti Lawyers are able to:

• Prepare and review trust deeds - create Inter Vivios Trusts and Testamentary trusts (Wills)
  
• Change trust deeds - to change beneficiaries, change the powers of the trustee, prepare documentation to appoint a new trustee

Testamentary Trusts

This is a trust which is created by a Will and comes into effect upon the Will-maker's death. The terms of the trust are contained in the Will'maker's Will.

Common examples of these trusts are:

• Life estate for the Will-maker's spouse
  
• Trusts for children
  

For information on Wills, see our section here.