Types of Trust

There are a number of different forms of trust, some of which are used more than others. The following is a brief description of some of the more commonly used forms of trust and a glossary of frequently used trust terms.

TYPES OF TRUST
Discretionary Trust	A Trust where distribution of funds to the beneficiaries is mainly at the discretion of the Trustees
Inter-Vivos Trust	An expression used to indicate a Trust created during the Settlor's lifetime
Purpose Trust	A Trust that is not a trust for the benefit of an ascertainable person or group of persons but is established for a stated purpose or purposes.
Fixed Trust	A Trust where the interests of the beneficiaries are clearly defined
Asset Protection Trust	A trust that is established in a jurisdiction which has provisions in its trust legislation to provide enhanced protection for the assets of the trust fund.


GLOSSARY OF TERMS
Beneficiary	A person who is entitled to a benefit whether contingent or not under a Trust.
Protector	A third party who has the right to veto some actions of the Trustee. The powers of the protector are usually negative in nature (i.e. the consent is required) but may be positive in nature (i.e. the removal of the trustee).
Settlement	An expression to indicate the act of creating a Trust.
Settlor	A person creating a Trust. Often referred to as the Grantor in the USA.
Trustee	The person or corporation is responsible for the execution, administration and management of the Trust.
Memorandum / Letter of Wishes	A document in which the Settlor indicates to the Trustee his wishes in relation to the administration of trust. This can be completed either by a letter from the Settlor or a Trustee memorandum setting out the Settlors wishes during a meeting. These wishes are informal and not binding on the Trustee.

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Types of Trusts

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