A testamentary trust fund can be established with a provision in the event of death (will).
By establishing conditions for payment, the founder can determine the purpose or otherwise control pay out to heirs, even after his/her death and prevent, for example, the misuse of assets.
The founder is thus assured his/her estate will be handled in accordance with his/her will, and can ensure the effective inter-generational transfer of his/her assets through a testamentary fund.
The founder of the trust fund can secure him/herself and his/her immediate family in the event of injury or death through the fund.
Such a trust fund can then be used, for example, to pay benefits on retirement, while studying, during injury or inability to work and so on.
A trust fund can also be established for the purpose of business and generating profit.
Moreover, the founder need not worry that creditors will be able to claim his/her remaining assets in the event he/she is not successful, as his/her assets are separated from fund assets on the establishment of the trust fund.
Profits can then also be divide among the persons designated in the statute, even those different to the beneficiary. The law thus effectively allows other investors in the fund as sharers in profit.