Types of Trusts

Life Interests Trusts
This form of trust is designed to protect the family home. Each individual's share of the jointly owned property is preserved for the benefit of their children, while surviving partners may occupy the property for the remainder of their lifetime.

Children's Trust
Should both parents die, this form of trust allows the guardians to maintain and educate the children. The balance of the fund goes to the children at a predetermined age.

Accumulation and Maintenance Trust
This trust is usually set up for children or those incapable of looking after their own affairs. The trustees will be authorized to use the trust funds at their discretion to cover the expenses of education and maintenance for the beneficiary.

Inheritance Tax Mitigation Trust
A number of different trusts can be used to provide the maximum flexibility for the surviving spouse and children who may be liable to inheritance tax.

Protective Trusts
These trusts are protected against action by a trustee on behalf of a beneficiary seeking to use trust funds to pay off debtors in case of bankruptcy.

Fixed Trust
Allows a Settlor to ensure that his property can be enjoyed by more than one generation without the risk of it being squandered by the first generation. Beneficiaries will be named in the trust deed.

Discretionary Trust
This is the most flexible form of trust. It allows the Settlor to place the assets under trust at the discretion of the trustee(s) who will decide who is to benefit and how. A Settlor may wish to do so to protect himself against forced heirship rules. The Settlor will usually draft a letter outlining his wishes to the trustee.

Charitable Trusts
Generally, a trust will be recognized as charitable if its purpose is the relief of poverty, the advancement of education, religion, or any other community benefit.