TRUSTS

What is a trust?

Trusts are often used in connection with running a small business. A trust is not a separate legal entity in the same way that a company is. In simple terms it is a business structure where a trustee (usually a company) carries out the business on behalf of the members of the trust. A trust is set up through a trust deed.

Types of trust

There is a range of trusts including:

• Discretionary Trusts - where the trustee has a discretion when distributing funds to the beneficiaries. The most common example is the family trust
• Unit Trust - were unit holders have a number of units in the trust. Distribution from the trust is on the basis of the number of units held
• Hybrid Trust - this is a combination between a unit trust and a discretionary trust

Prime Money Matters can source the funding to match the need.