The Trust concept is widely recognised as a very effective taxation and succession planning structure. The Trust is an arrangement whereby assets are transferred from one person (The Settlor) to another person or corporate body (The Trustee) to be held by the trustees for the eventual benefit of the persons specified by the Settlor, in accordance with the terms and conditions as determined by the Settlor as contained in the Trust instrument.

The Trust is unique in its distinction between legal and beneficial ownership of property. This enables a settlor to divest themselves of the legal ownership whilst still being in a position to direct via the Trust Deed, how the assets are managed and distributed. The Settlor can be both a trustee and a beneficiary but it should be noted that if the Settlor retains too much control over and interest in the assets the Trust may be capable of being set aside as a sham.

The modern International Trust has become an extremely sophisticated and practical arrangement. The trustees, by virtue of their very wide powers and discretion, are able to conduct, for the benefit of the beneficiaries, most of the transactions that an individual can perform. For example, they may be empowered to form companies, to invest, give guarantees, borrow and lend money for the benefit of the Settlor or their businesses, purchase domestic or overseas property, or make interest free loans to beneficiaries.