A trust is an obligation imposed on a person - a trustee - to hold property or assets (such as business assets) for the benefit of others, known as beneficiaries.

 

Key aspects of a Trust

• can be expensive to set-up and operate.

• require a formal trust deed that outlines how the trust operates. 

• require the trustee to undertake formal yearly administrative tasks.

• if you operate your business as a trust, the trustee is legally responsible for its operations. A trustee of a trust can be a company

• It provide some asset protection

• In few cases, with trust type of business structure, one can take benefit of tax arbitrage