2. Why a trust?

7 months ago Updated: 08 December 2022 Credit source:

Depending on individual circumstance, trust might be established in order to provide for those who would not otherwise be capable of owning property on their own behalf, for example, for a reason of their incapacity. Therefore, a trustee may act as a legal representative for trustor to hold the property ownership on his/her behalf. Further, trust can provide a centralized property management structure for trustor who are not in a position to manage property themselves, thus they can ensure that their property is taken care of when they are not around. Interestingly, trust is utilized in business structuring for investors in Collective Investment Scheme. Unit trust is an example of utilization of trust as investment vehicles, in which trustee safeguards securities, properties and assets of the trust fund on behalf of unitholder who are the beneficiary of the unit trust.