| Unfortunately, most people think that once assets | | | | Trustee. This means they review the activities of the |
| are placed in a Trust they are protected forever! | | | | Trust and ensure that all administration work has |
| However, this is simply not the case. If a Trust is | | | | been correctly carried out. |
| found to be a "sham", then asset protection can be | | | | Why is this so important? Trustees have a legal duty |
| lost. So what is a Sham Trust? | | | | to discuss, agree and document the activities the |
| The concept of Sham Trust has evolved over time | | | | Trust is undertaking. When this doesn't occur, the |
| but for our purposes, it can be thought of as | | | | door is opened for a creditor or even a beneficiary |
| something that isn't genuine, a disguise or a faade. | | | | to allege that the Trust is a sham, and if the |
| Professional Trustees often 'rescue' a Trust from the | | | | allegation is successful, asset protection can be lost |
| sham stigma. They do this by faithfully and properly | | | | and the trust assets can be "up for grabs". |
| carrying out the work of being a Professional | | | | |