A discretionary trust is a great way to separate different assets and protect these from business risk. A discretionary trust works by separating "ownership" from "control". By using a trust you may ensure that your personal assets are not put at risk. Trusts are based on legal technicalities, so it is necessary to take care, simple technical failures in the management can undo the protection that a trust offers. Too often we find that advisors do not take care to ensure that the arrangement actually works, or having set up the trust properly, over time the original intention of protecting the asset is forgotten. Please read our story about Ralph to see how the most carefully constructed trust will not offer protection when improperly managed.