Property & Financial
"When one thinks of trusts, one thinks of widows and orphans and the wistful savings of a vanished hand."
(William Arthur Fearnley-Whittingstall, Barrister-at-law)
What is a Trust?
A Trust is an obligation placed upon a person or a company (the trustee) to hold property or assets (including business assets) for others (the beneficiaries). The duties and obligations of the Trustee are typically (but not always) decribed in a document known as a Trust Deed.
A Trust cannot exist for an indefinite length of time. The position under the General Law is known as the Rule Against Perpetuities and means that the Trust cannot extend more than twenty one years beyond the lifetime of a party who was alive when the Trust was created. Some States have modified this through legislation, e.g., Victoria and Queensland, where a Trust is limited to a life of eighty years.
A Trust can be a tax-effective way of managing assets and there are several common types of trust: