How to Establish a Trust

Before learning how to set up a Trust, you should be able to answer:

• Why you need a Trust;
• What property will go into the Trust;
• Who will benefit from the Trust;
• Who the trustees will be;
• The terms of the Trust; and,
• A name for the Trust.

One of our client managers will work with you to answer these questions (among others) before beginning the process of setting up a Trust. A Trust Deed is prepared first. The Deed defines who the Trustees and Beneficiaries are, the duration of the Trust (125 years by default) and will contain various specific powers relating to the management of the Trust assets. The Deed is signed by the Trustees and Settlors, while an initial gift (usually $100) is required to make the Trust operative.

The assets to be placed into the Trust are then transferred to the Trustee by ‘selling’ to the Trust at market value. The Trustee will usually sign an acknowledgment of debt to the Settlor. It is important that the transfer of assets to the Trust is documented to give an accurate record of the transactions and retain legitimacy. This and many other administrative procedures can be handled by Perpetual Guardian by appointing us as Trustee.

Learn more here.