Trusts – Tax and related considerations

A trust is used to manage the assets of a person, called a settlor. The settlor creates the trust to ensure assets that are transferred into the trust are distributed and managed according to his wishes.

A private trust, for example, is a legal instrument that takes effect during the lifetime of the settlor. It contains the settlor’s instructions to the trustees on the distribution of assets that form part of the trust to the beneficiaries.