A trust may be created in the natural course of the administration of a deceased’s estate or through specific instructions of a Testator in his/her Will.

Where there is a minor or life interest, for example where there is a minor beneficiary or a beneficiary who is incapable of managing his/her own affairs, a trust needs to be set up for the benefit of the said beneficiary. Under these circumstances, it is the duty of the Trustee to manage the assets to which the said beneficiary is entitled to, for the benefit of the beneficiary. The law prescribes that administration shall be granted to a trust corporation or to not less than two individuals where the estate involves an infant beneficiary or a life interest.

A Trustee would also be responsible in managing a trust created by the Testator in his Will. In this respect, it is always advisable for the Testator to sign a separate Trust Deed to encompass the details of the powers and responsibilities of the Trustee instead of merely stating the same in his/her Will. This would ensure that the terms of the trust are clear and can be carried out effectively as per the wishes of the Testator. One of the most important element of a trust is that the terms should be clear and unambiguous. Therefore, if the terms of the trust are not expressly stated, the trust might be declared as void due to uncertainty of terms.

The Executor and Trustee can be the same person. In fact it is advisable to appoint the same person as the line between the time when executorship ends and when trusteeship begins is often difficult to define. Furthermore, costs might be involved in transferring or delivering assets from the Executor to the Trustee. As such, it would be better to have the same person/corporation to administer both the estate and the trust arising there from.