What is a Trust?

A lot of people think trusts are only for the super-rich, but not so. A trust is a fantastic tool for anyone who wants to manage how they leave their money for their family.

You can think of a trust like a box into which you - the donor, or settlor - place your assets such as your house, investments and other possessions. These become the property of the trust and are managed by the persons you appoint as trustees who will carry out your wishes on your behalf. As the settlor, you decide who will receive the assets inside your trust and when.

You may not want to think about how your possessions are distributed after you're gone, but doing so will make life easier for your family. One of the benefits of trusts is they avoid probate, so your beneficiaries will not have to go to court after your death to access your assets.