People often ask whether an estate will ‘go to Probate’, although many are unclear exactly what this means. A Grant of Probate (or Letters of Administration if there is no Will) authorises the Executor to administer the estate by collecting in...
Bare Trust | This is a basic Trust in which a beneficiary has an absolute right to the capital and income from the trust assets. Those assets are held by a trustee for the benefit of the beneficiary. |
Beneficiary | Somebody who benefits under the terms of a Trust. |
Discretionary Trust | A Trust in which the trustees have discretion as to which of the potential beneficiaries they benefit. |
Fiduciary Duty | The duty of acting for the benefit of another party, eg. the relationship between trustee and beneficiary. |
Interest in Possession Trust | Another name for a Life Interest Trust. |
Life Interest Trust | A Trust which allows the life tenant beneficiary to enjoy trust assets and/or income from them during their lifetime. After the life tenant dies, the assets pass to other beneficiaries (the remainder beneficiaries). |
Settlor | Someone who establishes a Trust. |
Trust | The transfer of assets to trustees who hold those assets for the benefit of others. Can be made in your lifetime by a Trust Deed or to take effect after your death in your Will or under the rules of intestacy. |
Trustee | A person who holds or administers property or assets for the benefit of a third party. |