Determining the ownership of a trust involves identifying the settlor (creator), trustee(s) (manager(s)), and beneficiaries (those entitled to benefits). A simple example is a parent establishing a trust for a child’s education, with a bank acting as trustee. The parent is the settlor, the bank the trustee, and the child the beneficiary.
Transparency in trust ownership is crucial for legal and financial accountability. It allows for proper oversight, prevents misuse of assets, and aids in tax compliance. Historically, trusts have offered privacy, but increasing regulatory scrutiny emphasizes the need for clear identification of involved parties. This knowledge protects beneficiaries’ rights and ensures responsible management of trust assets.