Trusts are legal structures that allow assets to be held by a trustee on behalf of beneficiaries. The trustee legally owns the assets but holds them for the benefit of the beneficiaries. Trusts are established by trust deeds, which set out the rules for how the trust assets are managed and distributed.
Unitholders are the owners of trust property and the trustee administers the trust. The trustee has a fiduciary duty to ensure that unit holders are treated equally. The fund manager is appointed by the trustee to manage the investment of the trust assets.
To find out who owns the assets in a revocable trust, look to whoever is the trustee. If the trustee is also the grantor, then the grantor still owns and controls the assets. If the grantor assigned another person or entity as the trustee, the trust owns the assets, which are managed by the trustee.
A custodian is a company, usually a bank, approved by the Authority to hold in safe custody the funds/ assets of a collective investment scheme/ unit trust. Trustees on the other hand, ensure that the investors' interests are protected at all times.
A beneficial owner is an individual who ultimately owns or controls an entity such as a company, trust or partnership. 'Owns' in this case means owning 25% or more of the entity. This can be directly (such as through shareholdings) or indirectly (such as through another company's ownership or through a bank or broker).
the assets of a unit trust are held for investors by trustees, hence the name 'unit trust', and they are invested by managers; • the assets of an OEIC are held by an independent depositary; and • there is generally an initial charge which covers setting up costs and also an annual management fee.
A trustee is in charge of the trust and manages the trust assets on behalf of the grantor and according to the trust agreement. A trust beneficiary receives the assets of the trust.
Selecting the wrong trustee is easily the biggest blunder parents can make when setting up a trust fund. As estate planning attorneys, we've seen first-hand how this critical error undermines so many parents' good intentions.
Companies are owned by shareholders, however, there are different entities that can own these shares. Firstly, people can own these shares, as can a parent company. Shares can also be held in trust.
A unit trust scheme is constituted by a trust deed generally entered into between a trustee (typically a bank or insurance company) and the manager of the scheme who will be responsible for investing the assets of the unit trust in accordance with the terms of the trust deed.
What are the disadvantages of unit trusts? Unit trusts generally invest only in listed financial assets (traded on an exchange) and therefore do not provide opportunities for investment in tangible assets such as gold coins, diamonds, stamps, or unlisted assets like privately held companies or hedge funds.
After the grantor's death, a trustee or successor trustee is responsible for managing and distributing assets to beneficiaries. Trust administration might take months, depending on how complex the trust is. The trustee has a fiduciary duty to act in the trust's best interests.
The trustee is the legal owner of trust's property. This means that trustee's name should appear on all ownership documents, such as shares, managed funds, property etc. However, this ownership of asset is not in their “own benefit”, but as a beneficial owner, on behalf of the trust.
First, the grantor works with an attorney who writes the trust document based on the grantor's wishes for the distribution of specific assets. The grantor then chooses a responsible individual or firm to serve as trustee — holding and administering the assets for the benefit of the beneficiary.
You can withdraw your investment from your unit trust fund at any time. Also known as a repurchase or redemption, this is when you sell some or all of the units that you own in a unit trust fund. The proceeds are then paid into your bank account.
Trusts offer amazing benefits, but they also come with potential downsides like loss of control, limited access to assets, costs, and recordkeeping difficulties.
Trustees can sue beneficiaries for damaging trust property, with specific conditions and time limits for legal actions. Trust litigation attorneys can help trustees navigate their duties, resolve disputes, and comply with state laws to avoid litigation.
A dynasty trust is an irrevocable trust created to pass wealth from generation to generation without incurring estate taxes. It avoids the generation-skipping transfer tax, enabling long-term wealth growth for multiple generations.
From a legal standpoint, the trust itself is the official owner of any assets that have been retitled and transferred into it – not you as an individual.
This is a fundamental concept of trust law: the separation of legal and equitable title. In other words, while the trustee has the legal authority to manage and control the assets, they do so not for their own benefit, but for the beneficiaries.
WHO IS THE “RIGHT” TRUSTEE? A natural first inclination is to consider a family member or trusted friend who knows you and your philosophies and values well. Family or friends may personally know your beneficiaries and their needs.
The Depositary acts as legal owner of the unit trust's assets on behalf of the investors. Managerial responsibility rests with the board of directors of the management company. The management company enters into contracts with the administrator, investment manager and other service providers.
There are three parties to a unit trust: the mangers, the Trustees and the Holders.
In Singapore, unit trusts are established by a trust deed. The trust deed is a legal document that sets out the working arrangement between investors, the fund manager and the trustee. It spells out the investment objectives of the unit trust, and the responsibilities of the fund manager and trustee.