What different types of trusts are there?
The trusts we set up for our clients depend on your objectives and the choice of assets to settle (that is gift) to the trust. For instance, would it be appropriate for you to transfer your home or a property into a trust or perhaps money, stocks or bonds? If your principal concern is to protect the interests of younger children then there are trusts specifically for this purpose. There are a number of different types of trust. The following are among the more common: • Bare (or Simple) Trusts: the beneficiary has an immediate and absolute right to both the trust capital and the income it produces. The beneficiary has the right to take possession of the trust property. • Discretionary Trusts: trustees of a discretionary trust have the discretion about how to use the trust assets. These trusts can be very flexible and the trustees can decide: • how much is paid to a beneficiary • which beneficiary receives any payments • when payments are made • what conditions may apply • Interest in P
