Information Sheets: Private

What is a Trust Fund?      A trust comes into effect when a ‘settlor’ places money, land or other assets in the hands of trustees. The trustees are the legal owners of the property but are obliged to hold and manage the property for the benefit of a person or a group of people, who are called beneficiaries. Types of Trust Bare Trust In this type of trust, sometimes called a ‘simple trust’, the beneficiary has an immediate and absolute right to the property in the trust. The trustees have no discretion as to how the fund is managed. They must manage the trust assets for the maximum benefit of the beneficiary. The income of these funds is taxed as if it is the income of the beneficiary unless the donor is a parent, in which case the trust income is normally taxed as ... Read more