Forming a Trust


In order to form a Trust the following steps are usually undertaken by EBC and the client:


STEP A


EBC will discuss with the client (the settlor), the following:

  • Identify the Beneficiaries
  • Selection of the Trustee and
  • The assets to be held through the Trust
  • The reasons and objective for forming the Trust


STEP B


Following the discussion regarding the settlor’s requirements, EBC will prepare the Trust Deed, covering the following areas:

  • The Trustee
  • The Beneficiaries
  • Name of the Trust
  • Details of the Trust
  • Duration of the Trust
  • The rights of the Settlor
  • The identity of the Settlor
  • Governing law of the Trust
  • Appointment of a Protector
  • Trustee and Beneficiaries vis-a-vis each other and the Trust fund
  • The powers, discretion, obligations, Fees and Duties of the Trustee

This draft Trust Deed will then be discussed with the Settlor and amendments made as appropriate in order to produce the final Trust Deed.

 

STEP C


A letter of wishes will be drafted by EBC in consultation with the Settlor. Written by the Settlor to the Trustee, this letter guides the Trustee as to how the Trustee should exercise his discretion in certain circumstances. Although this is not a legally binding document to the Trustee it serves to give the Trustee an understanding of the wishes of the Settlor. Common matters covered by the letter of wishes include: ages at which Beneficiaries should benefit, provisions for education, changing family circumstances(marriage, further children or grandchildren), investment policy.

 

STEP D


Transferring the Assets into the Trust.

EBC is able to offer clients the following Trust services:

  • Forming a Trust
  • Trust administration
  • Provision of Trustees
  • Provision of Protector
  • Selecting a jurisdiction
  • Review of existing Trust structures
  • Transfer of existing Trust structures to EBC