🏛 Trust: Where the Creation Begins

Now that we’ve covered the key characteristics of a trust, it’s time to move on to the next stage — how a trust is created in practice.

✍️ 1. Trust Deed

The legal foundation of the trust: it sets out the objectives, rights and duties of the parties, the composition of assets, and the rules for their distribution.

A well-drafted trust deed ensures both protection and management flexibility.

👤 2. Appointment of Trustee

The trustee manages the assets in the interests of the beneficiaries.

This can be either a private individual (a family member or partner) or a professional trustee.

💰 3. Initial Settlement

To “launch” the trust, the settlor contributes an initial asset — the initial settlement.

In some jurisdictions, this is a symbolic amount (e.g., USD 10); in others, a minimum threshold is required.

🌍 4. Choice of Jurisdiction

The selected jurisdiction determines:

• the tax regime and reporting requirements;

• the flexibility of trust management;

• the level of confidentiality;

• and the degree of asset protection.

📍 Popular Examples:

BVI, Jersey, Guernsey — flexibility and simple administration

Singapore — strong regulation and excellent reputation

Europe — reliability, but more complex taxation

📍 A trust is a powerful wealth management tool — but its proper establishment requires a clear strategy and qualified professional support.

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