Trusts
City Trust will assist you in setting up a trust. We will act as Trustees and ensure the proper administration of the trust. The following information gives an outline of the history and some current usages of trusts.
Background
 A trust is an entity that is well understood within English speaking common law jurisdictions. Originally trusts were established to protect the wealth of individuals and family groups, and this is still the case today.
A trust is created when a person (the settlor) transfers ownership of assets to a third party (the trustee) to be administered on behalf of the beneficiaries (i.e. those people who enjoy the benefit of the assets). A trust distinguishes between the legal ownership (the trustee) and the beneficial ownership (the beneficiaries) of assets. Typically, City Trust Limited acts as trustee of the trusts which it administers.
Because the original owner (the settlor) no longer has ownership of the assets, several important advantages can occur, such as enhanced capital and inheritance tax planning opportunities, asset protection and confidentiality. A number of factors will influence the creation of a trust but, with expert advice, these issues can be addressed to maximise effectiveness.
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Transferring assets into a trust can avoid unnecessary delays in probate formalities and associated legal costs. It immediately frees assets for the benefit of the beneficiaries without the risk of public scrutiny. Of equal importance is the continuity in the administration of a trust’s assets at a time of stress for the beneficiaries.