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Settlor: this is the person who initiates the establishment of the Trust, and transfers his assets to the Trustee, on the understanding that the assets are then no longer the Settlor's, but the Trustee's. Generally, the Settlor tends to be a natural person, but it can also be a company.

Trustee: the future owner and manager of the assets, who holds and handles the assets in accordance with the agreement, and, in the event of certain circumstances, divides the assets up between the beneficiaries. The Trustee can be a natural person, but nowadays it is more usual for this role to be filled by a company specialising in this field; these companies tend to be legal offices, banks, notaries public etc.

Beneficiary: these are the people who enjoy the profits of the assets placed in Trust. These are usually natural people, and generally include the Settlor all the while that he is still alive. In most cases the beneficiaries are the Settlor's close family members (spouse, children), and other people named by the Settlor in the Declaration of Trust (brothers, friends etc.). The beneficiaries could, however, be companies or other organisations, in accordance with the wishes of the Settlor.

Protector: this is the person who provides the Trustee with instructions regarding the management of the assets if the Settlor becomes incapacitated or dies. In many cases, the role of the Protector is extremely important, as he is the one who knows the situation and peculiarities of the Settlor's assets better even than the Trustee, so is able to give the best advice as far as the handling of the wealth is concerned. From this it is clear that there must be a relationship of complete trust between the Settlor and the Protector. Thus, the Protector can be a close friend, a private lawyer or a trustworthy business partner.

The assets placed in Trust: The assets placed in Trust can be practically any movable property or real estate, or any goods, material or immaterial. Generally, there are no restrictions on the assets of the Trust, but the legal transfer of the assets can be a lot more complicated. This is particularly the case when, for example, a piece of real estate has to be transferred to the Trustee, or when the Trustee legally takes possession of a racehorse.

Declaration of Trust: Early Trusts were not recorded in writing, and even today it is legally possible to establish a Trust without preparing any formal documentation. If the formal requirements are all in place, then the parties can form a Trust by entering a verbal agreement. Nowadays, however, most Trusts are formed in writing. The parties set down the regulations for the establishment and operation of the Trust in the Declaration of Trust, a document drawn up specifically for the purpose.

Letter of Wishes: this is a one-sided declaration, in which the Settlor sets down the principles according to which the Trust should be organised, and how it should be operated (who the beneficiaries are etc.).