A trust is a legal arrangement — here is what you need to know.
What is a Trust?
A trust is a legal arrangement whereby one person (the settlor) gives assets to another person or persons (the trustees) who hold and manage those assets for the benefit of others (the beneficiaries). The trustees own the assets legally but they must use them for the benefit of the beneficiaries in accordance with the terms of the trust deed.
The Parties to a Trust
There are three key parties to any trust: the settlor (the person who creates the trust and transfers assets into it), the trustee (the person or entity that holds and manages the trust assets), and the beneficiary (the person or persons who benefit from the trust). In some cases the same person can be both the settlor and a beneficiary.
How Does a Trust Work?
Once assets are placed into a trust, they are no longer owned by the settlor — they are owned by the trustee on behalf of the beneficiaries. The trustee must manage those assets in accordance with the trust deed and in the best interests of the beneficiaries. GCB Trust creates a dedicated trust structure governed by a legally binding trust deed for every client relationship.