Trusts protect your hard earned investments. When you set up a trust you allow someone else to control your assets.
Generally there are two kinds of trusts:
This is a trust that is specified in your Will and only comes into effect if you die. It is often used to look after minor children if one or both parents die while the children are still minors.
This trust is set up while you are alive. Once you transfer assets into the trust, you no longer own or control the assets. Once the assets belong in the trust they are subject to different taxation. It is essential that you get professional advice when setting up an inter-vivos trust as there are various legal requirements.