Legal background to trusts & estates: setting up a trust
The property that a settlor puts into trust is called
- the trust fund, or
- the corpus of the trust, or
- settled property.
The trust property does not pass to the settlor’s personal representatives when he dies.
Trustees hold the assets in a fiduciary capacity in accordance with
- the terms of the trust
- the relevant statutory provisions.
This means they must exercise rights and powers in good faith for the benefit of beneficiaries.
A testator can set up more than one trust in a will. These trusts can be for the benefit of various people, not necessarily the testator’s family.