A trust is a legal arrangement that allows a person or entity, known as a trustee, to hold and manage assets for the benefit of one or more beneficiaries. Trusts can be used for various purposes, such as estate planning, asset protection, tax planning, and charitable giving. Here’s a general overview of how trusts work:

Creation of the trust:

The person who creates the trust is known as the settlor, grantor, or trustor. The settlor transfers assets (e.g., cash, property, investments) into the trust, establishing its initial funding. The settlor also lays out the terms of the trust in a legal document called the trust deed or trust agreement, which outlines the trust’s purpose, the trustee’s powers and responsibilities, and the beneficiaries’ rights.


The trustee is the person or entity responsible for managing the trust assets according to the terms set forth in the trust agreement. Trustees have a fiduciary duty to act in the best interest of the beneficiaries and to follow the trust’s terms. Trustees may be individuals or professional entities like banks or trust companies.


Beneficiaries are the individuals or entities for whom the trust assets are intended to benefit. The trust agreement specifies who the beneficiaries are and how they will benefit from the trust, which can include receiving income, principal, or both. Beneficiaries can also be subject to certain conditions or restrictions, such as reaching a specific age or achieving certain milestones.

Trust property

The trust property, also known as the trust corpus or principal, comprises the assets placed into the trust by the settlor. The trustee manages these assets, which can include real estate, cash, stocks, bonds, or other investments.

Types of trusts

There are several types of trusts, each serving different purposes and offering various benefits. Some common types of trusts include:

Revocable trusts

These trusts can be changed or terminated by the settlor during their lifetime. They are often used for estate planning and avoiding probate.

Irrevocable trusts

These trusts cannot be changed or terminated by the settlor once established. They offer greater asset protection and potential tax benefits.

Testamentary trusts

These trusts are created upon the settlor’s death, as outlined in their will. They provide control over how assets are distributed to beneficiaries.
Living trusts: Also known as inter vivos trusts, these are created and take effect during the settlor’s lifetime.


The trustee distributes the trust’s income or assets to the beneficiaries based on the trust agreement’s terms. Distributions can be made regularly (e.g., monthly, annually) or based on certain triggering events or conditions (e.g., a beneficiary’s graduation, marriage, or the birth of a child).

Trusts can be complex and subject to specific legal and tax implications, so it’s essential to consult with an attorney or financial advisor when considering establishing a trust.

At JR & Firm LLC, we pride ourselves on our expertise in setting up various types of trusts across a multitude of countries. Our team of experienced professionals provides personalized and detailed assistance based on your individual needs, requirements, and specific circumstances. Whether it’s a revocable trust, irrevocable trust, or a family trust, we can guide you through the complex process of trust creation. Our mission is to help you navigate the legal and financial intricacies of trust formation, ensuring your assets are protected and your wealth management goals are met. Trust JR & Firm LLC to secure your financial future.

Chinese vs Hong Kong Company – Which one is better and why?

Discover the optimal choice for your business: Explore the advantages of setting up a company in Mainland China versus Hong Kong, and unlock the potential for success in the dynamic Asian market. Maximize your opportunities with expert insights on taxation, legal requirements, and market access strategies.

China Company Registration: Frequently Asked Questions for the Year 2023

As we approach 2024, our exploration of the intricacies of China Company Registration is fueled by the numerous FAQs that have shaped our journey throughout 2023. Whether you're navigating corporate compliance, exploring legal procedures, or seeking insights into the...

China Company Registration: How to Choose Company Name for your WFOE?

Unlock the potential of business success in China with expert insights on company registration. Discover key strategies and legal essentials with CEO Jasur Mavlyanov. Navigate Shanghai Silk Road opportunities seamlessly.

How to Get a Chinese Green Card: Shanghai’s New Policy Grants Immediate Green Cards to Expatriate PhD Holders.

Discover Shanghai’s new policy granting instant green cards to expat PhD holders. Breaking immigration barriers for academics. JR & Firm explains.

What Are The Living Expenses in Shanghai in 2024?

Living in Shanghai can be expensive, but there are ways to save money and live comfortably. This blog post provides a comprehensive overview of living expenses in Shanghai in 2024, including tips on how to save money on accommodation, food, transportation, utilities, and education. Whether you’re a business traveler, student, or tourist, this blog post will help you plan your budget and make the most of your time in Shanghai.

Complete Guide to Corporate Taxes for WFOE Owners in China (2024)

A definitive guide to understanding corporate taxes for WFOE owners in China for 2024. Stay updated on tax rates, compliance, and planning.

Complete Guide to WFOE Registration Documents in China for Foreigners in 2024

A comprehensive guide outlining the required documents for registering a company in China, whether you’re doing it remotely or in person. Learn about legalization, translation, and more.

From Brazil to China: How to Enter the Chinese market?

Get answers to key questions about opening a company in China. Compare Mainland China vs. Hong Kong, explore Free Zones, and understand tax benefits. JR & Firm guides you through the process.

How to sell on Taobao and other ecommerce platforms in China?

Learn how to tap into the lucrative Chinese market by selling on Taobao and other major ecommerce platforms in China. A comprehensive guide for global sellers.

Is it better to start a company (WFOE) in China from distance or by visiting in person?

Starting a Wholly Foreign-Owned Enterprise (WFOE) in China can be done either from a distance or by visiting the country in person, and each approach has its own advantages and disadvantages.

Jasur Mavlyanov, an experienced entrepreneur and legal expert, has built a notable career in international business, with a focus on China. With over 13 years of experience living and working in China, Mavlyanov has acquired valuable insights into the Chinese legal system and business environment.

As an entrepreneur, Jasur founded JR & Firm LLC, a company dedicated to providing legal services to global clients entering the Chinese market. His leadership has helped the firm become a reliable partner for businesses navigating the complexities of Chinese regulations and laws. READ MORE about Jasur.

error: Content is protected !!