A trust is a legal obligation that comes into existence when an individual or other legal entity (known as the settlor) transfers the legal ownership of his assets to another person or persons (known as the trustees) to hold not for their benefit but for the benefit of the beneficiaries who may be individuals or otherwise.
The trustees become the legal owner of the trust assets once the assets are transferred to them. Thereafter the beneficiaries, ipso facto, become the beneficial owners of the trust assets. The trustees shall manage the trust assets entrusted to them in accordance with the terms and conditions of the respective trusts.
Simply put, a trust is a right of property, immovable or otherwise, held by one party for the benefit of another.
Trust is known as Al-Amanah in Islam
the following Quranic verses emphasise its importance :
Forms of Trust
A trust can exist in any one of the three forms, namely :
Trust Services at as-Salihin
At as-Salihin we offer Islamic and comprehensive Trust services where we will act as the Trustee for trust assets for the following purposes :
Duties of Trustees
Stringent statutory rules (such as those contained in the Trustee Act 1949 and the Trust Companies Act 1949) are imposed upon trustees in the performance of their duties.
The trustee’s duty, noted the learned Yusoff Ali in his commentary on the above verse, is to guard the interest of the person on whose behalf he holds the trust and to render back the property and accounts when required according to the terms of the trust. This duty again is linked to the sanction of Religion which requires a higher standard than law.