A Trust is the formal transfer of assets (property, shares or cash) to a select group of people, called trustees, or to a trust company. It allows individuals to protect their assets and control how they are used after they have been given away. You can set up Trusts during your lifetime or in your will.
The will creates the Trust but certain formalities may be necessary to ensure that any assets or property intended to be in the Trust are transferred properly. Often the executors in the will are also the trustees and it is important that they understand their duties as trustees and also understand that they must ensure that they comply with their legal obligations, which may include filing tax returns, insuring and maintaining property and protecting investments.
If at any point it is decided that the Trust is not required formal steps must be taken to dissolve or terminate the Trust or to remove or replace Trustees. During the lifetime of the Trust the trustees should hold annual meetings to review what steps if any need to be taken to protect the Trust assets, and investments and if necessary distribute income. All decisions and actions and the reasons behind them should be recorded.