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The Trust is one of the most important tools in modern-day asset protection. The uses of Trusts have become very varied, as it offers a solution to many of the problems which arise during the management, handling and protection of assets. Some of the reasons for establishing a Trust are as follows:

The secure deposit of assets. It may be particularly important for residents of areas which are politically unstable to have their assets held and managed by a person resident in a stable area. This is even more important in cases where foreign exchange restrictions exist in parallel with political instability.

Protection of private assets from claims by creditors, lawyers specialising in damages, and divorced spouses. As the assets are no longer the property of the Settlor once the Trust has been established, claims of this nature will be fruitless as the Settlor officially has no assets to claim against: he is no longer the owner, and the Trustee can not be the subject or defendant in such a case.

Discreet asset holding. In numerous cases the Settlor is in a position where it is not desirable to show the true extent of his wealth, as this may lead to certain negative consequences and judgements.

Inheritance and capital gains taxes. In many countries with developed tax systems, asset holders can be hit with significant capital gains taxes on their growing wealth even during their lifetime, while upon the death of the asset holder, his heirs are required to pay exorbitantly high inheritance taxes (in some cases up to 50 %). However, if the Settlor handed over his assets to a Trustee while he was still alive, his heirs will not be subject to inheritance tax upon his death.