Test your understanding
(1). State whether the following statements are true or false.
A The law of trusts enables the legal ownership of an asset to be separated from the beneficial ownership of the same asset.
B The beneficiary of a trust is the legal owner of the trust’s assets.
(2). Identify which of the following is/are potentially valid reasons for creating a trust.
A The value of the assets in the trust can be preserved for a particular individual whilst the income generated by the assets is paid to someone else.
B An increase in the value of the assets within a trust can be excluded from the estate of the person who created the trust.
C The income generated by the trust assets can be paid to minor children without the need for them to be able to control and manage the assets.
Answers
