WHAT IS A FAMILY TRUST?
A trust is a legal arrangement under which a trustee, or trustees, hold assets for the benefit of other people. It is a separate legal entity or body and will be given a name.
DOES A TRUST HAVE TO BE IN WRITING?
In its simplest form – no. But for the purposes of the type of family trust discussed here, yes it certainly does. A simple form of trust would be for instance the bank account in the name of a parent but held for the benefit of a child.
WHAT FORMS A TRUST?There are several essential parts -
The Trust Deed will normally contain details of the powers which the trustees may
JOINT TRUSTS OR MIRROR TRUSTS?
A “Joint Trust” is the term used where two people together (usually husband and wife) make one single Trust.
A “Mirror Trust” is the term used when two people, again usually husband and wife, make individual Trusts at the same time, but in a form which mirrors each other. Thus the husband may make a Trust which is expressed to be for the benefit of his wife and children.
The wife makes a Trust in similar terms but is for the benefit of her husband and children. Whether you should have a Joint Trust or a Mirror Trust is a matter to be discussed with your