1. A trust is the legal entity that results when a Settlor, for the benefit of specified persons or entities, transfers assets to it and appoints a trustee to manage it.
2. The assets of the trust must constitute an entirely separate fund and are not a part of the personal estate of the trustee.
3. The assets of the trust do not form part of the Settlor’s legal estate.
4. The assets of the trust must not form part of the beneficiaries’ own legal estate.
5. The title to trust assets are held in the name of the trustee or in the name of the trust and the trustee has control of the assets.
6. The assets of one trust must be separate from the assets of another trust.
7. The trustees are under an obligation in respect of which they are legally accountable to manage, employ or dispose of the assets of the trust in accordance with the terms of the trust, as imposed by the Settlor in accordance with the law.
8. The Settlor of a trust may reserve certain rights and powers; and the fact that the Settlor may have rights as a beneficiary is not necessarily inconsistent with the concept of a trust.
9. Trusts are formed either during the Settlor’s life or by will when the Settlor dies.
10. Trusts may be revocable or irrevocable.
11. Trusts are discretionary where the trustee may distribute income and assets to all or any of the beneficiaries as the trustee chooses and no percent is assigned to any one beneficiary.
12. Trusts are non-discretionary when strict arrangements for specific distributions of
Income and/or assets to or among the beneficiaries are set out as terms of the trust deed.