Glossary

> Beneficiaries
> Charitable trust
> Civil law jurisdiction
> Common law jurisdiction
> Deed
> Discretionary trust
> Excluded person
> Forced heirship
> Irrevocable trust
> Joint ownership
> Letter of wishes
> Life tenant
> Proper law of the trust
> Protector
> Revocable trust
> Settlor
> Trust
> Trust instrument
> Trust period
> Trustee
 

Beneficiaries

Persons capable of receiving benefit under a trust. Beneficiaries are either named in the trust instrument or otherwise described as a class of persons capable of receiving benefit (referred to as a "class of beneficiaries") in accordance with the terms of a trust. Beneficiaries may be entitled to income or capital or both. Beneficiaries may have a fixed entitlement under the trust, or may only be entitled to receive benefit at the discretion of the trustees.

Charitable trust

A trust established to benefit charitable purposes or objects.

Civil law jurisdiction

The characteristics of a civil law jurisdiction are, normally, the existence of codes covering large areas of the law (which define the rights and duties of persons in general terms) and the use of terminology, concepts and principles which can be traced back to Roman law. Most of the legal systems of continental Europe are civil law systems.

Common law jurisdiction

A jurisdiction with a legal system based fundamentally on English common law.

Deed

A document which is executed in accordance with the legal requirements of a particular jurisdiction, which may stipulate (depending on the jurisdiction in question) that the document must expressly state that it is a deed and/or be signed and delivered. The laws of some jurisdictions require that certain documents (e.g. for the conveyance of property) are executed as deeds.

Discretionary trust

A trust (which may or may not be irrevocable) which vests wide powers and discretions in the trustees particularly in regard to the application of benefit.

Excluded person

Any person expressly excluded from receiving benefit under a trust.

Forced heirship

Laws governing succession which entitle the heirs of a deceased person to receive a specified portion of such person's estate. Most civil law countries have such laws.

Irrevocable trust

A trust which, once validly settled, cannot subsequently be revoked (i.e. terminated) by the settlor.

Joint ownership

As joint tenants
Ownership of property by two or more persons, where upon the death of one of the joint owners, his/her interest in the property passes automatically to the survivor(s).

As tenants in common
A form of joint ownership where each owner has a specified share in property but is entitled to enjoyment of the property in common with others. Unlike joint ownership on a joint tenancy basis, where one of the tenants in common dies his share will fall into his estate and will not vest automatically in the surviving joint owner.

Letter of wishes

Sometimes referred to as a "Memorandum of Understanding", this is an informal document in which a settlor expresses his or her broad views as to the manner in which the trustees of a discretionary trust should consider exercising their powers or distributing assets - although such wishes have no legally-binding effect, they may be taken into account by the trustees, provided they do not conflict with the terms of the trust. The settlor may revise these wishes from time to time.

Life tenant

A beneficiary who is absolutely entitled to the income of a trust during his/her lifetime.

Proper law of the trust

The law which expressly governs the construction, interpretation and enforcement of the trust.

Protector

A person (who may be an individual or a body corporate) who is not a trustee but is given certain powers under the terms of the trust. These powers may, depending on the particular trus instrument, enable the Protector to give certain directions to the trustees, or may require that the trustees must obtain the Protector's consent before they can exercise certain powers or discretions (eg. where the trustees are considering making a distribution of assets or nominating additional beneficiaries). A Protector is more likely to be included in a discretionary trust, where the trustees have wide powers and discretions.

Revocable trust

A trust which may be revoked at any time by the settlor (in which case the trust assets will revert to the settlor).

Settlor

The original owner of the assets which are placed in trust. A trust may have more than one settlor.

Trust

An equitable arrangement whereby the legal title in assets is vested in persons known as trustees who are bound to preserve, enhance and apply such assets for the benefit of nominated persons or a class of persons.

Trust instrument

The document which sets out the terms of a trust.

Trust period

The period for which a trust may continue in existence. The Trusts (Jersey) Law 1984, as amended, provides that a trust may continue in existence for an unlimited period, although in many cases the trust instrument will specify a maximum duration, such as one hundred years. The maximum permissible period of any trust will vary according to its proper law.

Trustee

A person holding legal title to assets, which he holds not for his own sole beneficial interest but for the interest of another or others. A trustee may be an individual or a body corporate. A trustee owes strict duties to the beneficiaries of the trust, including a duty not to allow his personal interest to conflict with the interest of the beneficiaries and a duty to account strictly for his dealings with the trust assets.

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The Investec Trust group of companies, part of the Investec Group, comprises: Investec Trust (Guernsey) Limited, licensed by the Guernsey Financial Services Commission, registered number 11453, registered office Investec House, La Plaiderie, St Peter Port, Guernsey, GY1 3RP; Investec Trust (Jersey) Limited, regulated by the Jersey Financial Services Commission, registered number 58347, registered office One The Esplanade, St Helier, Jersey, JE4 8UW; Investec Trust (Mauritius) Limited, regulated by the Mauritius Financial Services Commission; Investec Trust (Switzerland) SA, regulated by the Association Romande des Intermédiaires Financiers and a member of the Swiss Association of Trust Companies; and Investec Trustees (UK) Limited registered in England with company number 3731270, registered office 2 Gresham Street, London EC2V 7QP.  Investec Private Trust Limited, registered in South Africa with registration number 1937/009516/06, operates in conjunction with Investec Trust. Investec Private Trust Limited and Investec Trust (Mauritius) Limited are subsidiaries of Investec Limited which is listed on the Johannesburg Stock Exchange, and are not owned by Investec Bank plc. Please see the Investec Trust Website Terms & Conditions, Privacy Statement and Data Protection Policy.