AYB205 Lecture Notes - Lecture 4: Legal Personality, Settlor, Asset Protection
Document Summary
Created when a person (settlor) grants ownership of property to a person (trustee) for use for the benefit of certain others (beneficiaries: appointer may be created by t remove, trustee may = beneficiary but not the sole. Mainly used to distribute wealth, protect property from disbursement or as a tax minimisation method. Responsible control of trust funds/assets variable depending on the type of trust (must be stated) Complex legal structure difficult for s/t"ee to understand rights/obligations. Money/other assets can be comingled with t funds/a. Admission of new investors/beneficiaries is difficult and complex depending on trustee deed. Banks do not generally loan 23974 due to protect given under the law to t assets. Part of private law (state is not involved). Trust is created by agreement between the parties entering the trust agreement by: written deed not formally rendered. Not a separate legal entity or legal person.
