Trust is a relationship whereby property (real or personal, tangible or intangible) is held by one party for the benefit of another. The trust is governed by the terms under which it was created. The trust is also governed by the law. The trustee is obliged to administer the trust in accordance with both the terms of the trust and the governing law.
Typically a trust can be created in the following ways:
- a written trust instrument created by the settlor and signed by both the settlor and the trustees
- an oral declaration;
- the will of a decedent, usually called a testamentary trust;
The trustee may be either a person or a legal entity such as a company. A trust may have one or multiple trustees. A trustee has many rights and responsibilities; these vary from trust to trust depending on the type of the trust. The trustees are the legal owners of the trust's property. Trusts may be amended, altered or revoked by its settlor at any time, provided the settlor is not mentally incapacitated. It is essential to obtain legal advice before set