Setting up of Family Private Trusts
Constituents of the Trust
Settlor: The Settlor is a person who sets up and contributes assets to a trust for the benefit of the Beneficiaries and lays down its objects.
Trustee: The individual or a corporate designated to hold and administer the trust assets on behalf of the beneficiaries in accordance with the Trust objectives (also generally referred to as a “fiduciary”).
Beneficiary: A person who receives the benefit of the property from a trust as a right to receive a bequest or to receive income or Trust principal over a period of time as per the Trust objectives.
Trust Advisor/Advisory Board: Trust Advisor/Advisory Board provides guidance to the Trustees on management and administration of the Trust. The role of the Trust Advisor/ Advisory Board is important especially post lifetime of the Settlor in determining the functions of the Trust.
Trust Deed: Trust Deed is governing document which lays down the objects of the Trust, terms under which the trust property shall be managed & distributed and roles & responsibilities of its constituents.
Letter of Wishes: It is a document capturing the indication by the Settlor of the manner in which he/she wishes the trustees to exercise their discretion in relation to a trust