What Is a Trust?
A trust is a lawful arrangement where one party (the Trustee) holds and manages assets for the benefit of another party (the Beneficiary). This structure has existed in common law for over 500 years and remains one of the most powerful tools available for estate planning, asset protection, and wealth preservation.
The fundamental principle is straightforward: by transferring assets into a trust, those assets are no longer personally owned by any individual. Instead, they are held by the trust entity itself, managed according to a written trust deed that defines how the assets should be used and who benefits from them.
This separation between lawful ownership and beneficial enjoyment is not a loophole or a technicality — it's a foundational concept in property law that has been recognised and upheld by courts for centuries.
A Structure With Deep Historical Roots
Understanding where trusts come from helps explain why they remain so effective today.
The trust concept emerged in medieval England, initially used by Crusaders who needed a way to have their estates managed while they were abroad. A landowner would transfer lawful title to a trusted friend or family member, with the understanding that the property would be managed for the benefit of the owner's family.
Over centuries, courts developed and refined the rules governing these arrangements. The principles of equity that protect beneficiaries and hold trustees accountable were established through hundreds of years of case law — creating a robust framework that remains in force today.
Today, trusts are used by millions of families and businesses worldwide. From simple family trusts that hold the family home, to complex corporate structures managing billions in assets — the trust remains the gold standard for asset protection and estate planning.
"The trust is one of the most flexible and powerful instruments known to law."
— Scholars on trust structures
Historical Timeline
12th Century
First "use" arrangements during Crusades
1535
Statute of Uses shapes modern trust law
17th-19th Century
Courts of Equity develop trustee duties
1925
UK Trustee Act codifies trust principles
Today
Trusts recognised in all common law jurisdictions
The Three Key Roles
Every trust involves three distinct roles, each with specific rights and responsibilities.
Settlor
The individual who creates the trust and transfers initial assets into it.
The Settlor establishes the trust deed, which defines the trust's purpose, rules, and beneficiaries. Once the trust is established, the Settlor's role is typically complete — the trust exists as its own entity.
Trustee
The individual or entity responsible for managing trust assets.
The Trustee holds lawful title to trust property and has a fiduciary duty to manage it properly. This includes maintaining records, making prudent decisions, and acting in the best interests of the beneficiaries at all times.
Beneficiary
The individual or individuals who benefit from the trust assets.
Beneficiaries have equitable rights to benefit from trust property, but don't hold lawful title. This separation is what provides the protective benefits — the beneficiary enjoys the use of assets without directly "owning" them.
Important Flexibility
The same person can hold multiple roles. You can be both the Trustee and a Beneficiary of your own trust — managing the assets while also benefiting from them. This is common practice and provides practical control while maintaining the structural benefits of the trust arrangement.
Why Families & Businesses Use Trusts
Trusts serve many legitimate purposes — from simple estate planning to complex business structures.
Asset Protection
Assets held in trust are separate from your personal estate. This separation can provide a layer of protection from personal liabilities, disputes, and unforeseen financial difficulties. The trust owns the assets — not you personally.
Estate Planning
Trusts allow you to plan how your assets will be managed and distributed, both during your lifetime and after. You can specify exactly how beneficiaries should receive benefits, at what ages, and under what conditions — ensuring your wishes are honoured.
Privacy
Unlike wills which become public record through probate, trusts can provide a degree of privacy in how your affairs are structured. Many families prefer to keep their estate arrangements confidential rather than having them accessible to anyone who requests them.
Succession Planning
Trusts provide continuity. If a trustee passes away or becomes incapacitated, the trust continues to exist and successor trustees can step in seamlessly. This avoids the delays, costs, and complications of probate proceedings.
Flexible Asset Management
Trusts can hold virtually any type of asset — real estate, vehicles, business interests, investments, intellectual property, and more. The trust deed can be tailored to specify how different types of assets should be managed and used.
Generational Wealth
Trusts can be structured to preserve wealth across multiple generations. Rather than assets being divided and potentially dissipated through successive inheritances, a well-designed trust can maintain family wealth for your children, grandchildren, and beyond.
What Can a Trust Hold?
Almost any asset of value can be transferred into and held by a trust.
Operating a Trust Properly
A trust is only as effective as its administration. Proper record-keeping and governance are essential.
Trustee Responsibilities
As a Trustee, you have a fiduciary duty to the beneficiaries. This means acting in their best interests, managing assets prudently, and maintaining proper documentation of all trust activities.
Record Keeping
Maintain clear records of all trust transactions, decisions, and asset movements. This includes meeting minutes, financial records, and correspondence.
Asset Management
Prudently manage trust assets according to the trust deed. This includes making reasonable investment decisions and maintaining property appropriately.
Beneficiary Interests
Always act in the best interests of the beneficiaries as defined in the trust deed. Avoid conflicts of interest and maintain transparency.
Essential Documentation
Proper documentation establishes the trust's legitimacy and provides a clear record of its operations. CAPMA provides members with templates and guidance for all essential trust documents.
- ✓ Trust Deed (founding document)
- ✓ Meeting Minutes templates
- ✓ Asset Transfer documents
- ✓ Trustee Appointment forms
- ✓ Beneficiary Declarations
- ✓ Succession Planning documents
Common Questions
Answers to questions we frequently hear from people considering a trust structure.
Can a trust hold different types of assets like property, vehicles, and investments?
How do I transfer assets into the trust?
Can the trust make purchases and pay for services?
What records do I need to keep?
Can the trust open a bank account?
What happens if a Trustee passes away or can no longer serve?
Can I be both the Trustee and a Beneficiary?
How is a Natural Law Trust different from other trusts?
What support does CAPMA provide for trust establishment?
Is there ongoing support after the trust is established?
The CAPMA Approach
We don't just sell you documents and leave you to figure it out. We provide genuine support and community.
Become a Member
Join CAPMA and gain access to our member community, resources, and educational materials.
Purchase Your Trust
Add your NLT to your membership and we'll guide you through the setup process.
Learn the Foundations
Access our educational materials to understand trust structures, principles, and proper operation.
Ongoing Support
Continue learning and get support from our community as you operate your trust.
Investment
Natural Law Trusts are available to CAPMA members as an additional service.
Natural Law Trust Package
$950
One-time purchase (members only)
- ✓ Complete customised Trust Deed
- ✓ All supporting documentation
- ✓ Step-by-step setup guidance
- ✓ Operational templates & forms
- ✓ Ongoing member support access
Requires active CAPMA membership. Additional trusts available at the same rate.
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