A trust is a type of legal arrangement that involves transferring control of your assets to a trustee that holds them on behalf of the beneficiary. Usually a trust is created for a specific purpose, such as avoiding certain taxes.A trust is also useful for avoiding costly probate procedures related to disposing of assets after the owner passes away.Once the trust is created, assets are legal transferred to the trust fund. At this point the assets cannot be taken back by the person initiated the transfer.Offshore trusts work in a similar way to normal trusts. The main difference is that they are set up in association and under the legal control of offshore trustees which are usually located in countries and territories considered as tax havens. (e.g. the Bahamas or the Channel Islands).> Collection Trust
Normally, a collection trust is arranged with relatively limited authority for the trustees (the party responsible for maintaining the trust). The assets and any generated income is held in the collection trust, with payments made to the beneficiaries at agreed-upon intervals.> Holding Trust
A hold trust is usually arranged to hold specific assets (e.g. shares in another company). Given that this is a trust, it is managed with the benefit of the beneficiaries taken into account. For instance, a holding trust that is charged with holding shares will manage and vote those shares in the best interest of the trust holder.