A Trust Fund, or Deed of Trust as they are sometimes called, is a private legal arrangement where the ownership of someone’s assets (which may include property, shares or cash) is transferred to a trustee to look after and use to the benefit of a third person or group of people.
The trustees then become the legal owner of the assets but the trustees must at all times put the interest of the beneficiaries above their own. You should have at least two trustees but can choose up to four. Choose people you can rely on to be your trustees and make sure they are happy to take on this responsibility.
Used correctly, Trusts can safeguard your family’s inheritance and protect your estate for future generations. They are particularly useful when planning how assets should pass from one generation to another especially when family structures are complicated by divorces and second marriages.
Trusts can take effect during the lifetime of the settlor (the person setting up the Trust) or shortly after the death of the settlor (known as the 'Will Trust').