A Trust is a legal relationship created by a settlor when assets are placed under the control of a trustee for the benefit of a beneficiary(ies) or for other specified purposes.
The Trust is administered by a trust deed and managed by the Trustee, The Trust law DIFC Law No.4 of 2018 (the “Trust Law”) stipulates the requirements for trusts under the Trust Law while the Dubai Financial Services Authority (“DFSA”) regulates investment Trusts under investment Trust Law, DIFC Law No.5 of 2006, as well as the powers and duties of trustees of investment Trusts.
- The trustee(s) become the legal owner(s) of the trust property as far as third parties are concerned; and
- The beneficiaries can expect the trustee(s) to manage the trust property for their benefit.
While the key terms related to a trust are as follows:
- A beneficiary is the person entitled to benefit under the trust,
- A settlor is the person who sets up a trust and transfers the trust property to the trustee(s) for the benefit of the beneficiaries; and
- A trustee is the legal owner of the trust property and can deal with the trust property.
Chrysalis has mastered the Trust practice for over a decade, have always been a pioneer in the success of the DIFC trusts and has gained remarkable reputation as well as in-depth expertise in Trusts.
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DIFC TRUST: A reliable and efficient asset shielding instrument.
Trusts have usually been used as one of the most effective succession planning agreements.