Trust as a concept was formed in English speaking areas, where Common Law prevails. A trust deed is a legally binding document between the Settlor or Grantor and the Trustee about managing the property for the benefit of one or more individuals or organizations (a beneficiary).

Put simply, property is transferred from one person or grantor to another person or group of persons, on Trustee. With this transfer, property is in the possession of the Trustee for managing it in the interest of certain persons, beneficiaries. It is important to note that with the transfer the Trustee does not become an owner of the property but merely manages it in the interest of the beneficiary and not in his or her own interest. To protect from actions of the Trustee, which are not in accordance with the documents, we instate a protector.

In the trust legal documentation, we can also include an obligation that the Trustee needs to obtain permission from the Protector concerning the execution of any important decisions or functions.