1. Estate Planning
Trusts may be used for the planning of one’s wealth after death. Some people prefer to plan their estate during their life-time rather than leave such important matters to third parties after their demise. The property settled on trust during one’s life-time and the trust deed drawn up to define the trust relationship between the Trustee and the Beneficiaries, will naturally remain valid after the Settlor’s death. Moreover if one transfers assets into a family trust during one’s lifetime, then those assets will not be subject to any claims after one’s death from family members or other third parties.
2. Commercial Trusts
Commercial trusts offer practitioners a variety of tools to assist their clients for commercial purposes. Commercial trusts lend themselves to several business scenarios especially in the area of loan securitisation. Commercial trusts can also be set-up for joint business ventures. In such cases two or more parties develop an asset together. They often purchase such assets through a trust and thereafter transfer it directly to third parties.