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Trusts FAQ - What types of trusts are there?

Date: March 04, 2011

Q. What types of trusts are there?

A. The range of trusts can be broadly divided into 3 types: -

  • discretionary trusts - where the trustee has a discretion when distributing funds to the beneficiaries.
  • unit trust - were unit holders have a number of units in the trust. Distribution from the trust is on the basis of the number of units held.
  • hybrid trust - this is a combination between a unit trust and a discretionary trust.

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