A trust is a company that acts as an asset manager (fiduciary) for another business. The activity of a trust is characterised by two features:

A trust is an independent decision maker.
A trust does not own the assets it manages.
In other words, one person gives the property to a second for the benefit of a third. A trust is a legal arrangement whereby the settlor transfers his or her assets (real estate property, dividends, savings or other assets) to another person — the trustee — so that they may be used to benefit the beneficiaries (who can be either a single individual or a group). Trusts are widely used to protect and pass down wealth through the generations.

Although generally guided by the beneficiary, a trust is ultimately an independent decision maker. A trust acts in accordance with the rules and provisions set out in the relevant agreements, and aims to obtain the best results for the beneficiaries. The strategy for achieving those results, however, is determined by the trust itself. The scope of these activities is practically unlimited, ranging from investing to donating to selling an estate.

Functions of a trust
The main function of a trust is to manage assets on behalf of their owner for the benefit of the beneficiaries. For this purpose, a trust may choose any activities it deems effective and advantageous, unless the relevant contract specifies otherwise. Some of the functions of a trust include:

Managing finances
Managing investments
Paying bills
Accounting
Preparing financial reports
Distributing profits
In addition, a trust can perform almost any other management function specified by the contract. Depending on the particular case, they may also offer financial planning, tax optimisation schemes and similar services.

Trusts can be useful to anyone who possesses considerable assets. Trusts are usually set up to secure assets and property and to optimise taxation. They also have inheritance applications: assets held in trust do not require probate as they are no longer part of the settlor’s estate, and so are unaffected by the contents of his/her will.