Trust types

There are different types of trusts based on the rights of the settlors and beneficiaries of the trust.

As to the settlor’s and beneficiaries’ rights the trust can be:

  • Revocable – allowing the settlor to revoke and terminate the trust at any time at his own discretion with the remaining trust property transferred to the settlor; or
  • Irrevocable – with the settlor having no right to revoke and terminate the trust, so that disposal of the property to the trust is irrevocable to the settlor;
  • Fixed – the beneficiaries and their entitlement to the portion of the trust property is fixed in the trust instrument; and
  • Discretionary – the beneficiaries have no fixed interest in the trust property and the trustee has discretion to appoint the benefit to a beneficiary out of the trust capital or income.

MP Part will advise on the cons and pros of any of the trust type and assist in setting the trust type answering the expectations of the settlor and fitting into the goals of the structure.