Trusts come in many forms and levels of complexity, but at their core, a Trust is a legal arrangement where you, as the settlor, transfer assets into the legal ownership of trustees. These trustees then manage the assets on behalf of your chosen beneficiaries, according to the terms you've set out.

This structure separates legal ownership (held by the trustees) from beneficial ownership (held by the beneficiaries). Trustees are legally obligated to manage and administer the assets in the best interests of your beneficiaries, following the trust deed and trust law. Because the trustees legally own the assets, they are generally not considered part of your beneficiaries’ personal estates—meaning they can be protected from certain financial risks and claims.

Compared to a basic Will, where assets are typically distributed outright and immediately to beneficiaries, a trust allows for much more control and protection. When assets are left via a Will, the beneficiaries receive them absolutely. While this might be appropriate in some cases, it can expose those assets to risks such as divorce, bankruptcy, or financial mismanagement—especially if the beneficiaries are young, vulnerable, or going through a difficult period in life.