Many people associate trusts with investment portfolios, cash and listed shares. In reality, trusts can often hold a much wider range of assets.
Depending on the relevant laws and the terms of the trust, they may own family businesses, commercial property, private investments, art collections, intellectual property and other complex assets. However, not every trustee has the expertise or operational capability to administer these types of holdings. If a trust is intended to hold non-financial assets, it is worth confirming that the trustee has experience managing them.
What types of assets can a trust hold?
The answer depends on the jurisdiction, the trust deed and the nature of the asset. However, trusts commonly hold assets such as:
Cash deposits.
Listed shares and bonds.
Investment portfolios.
Commercial and residential property.
Family businesses.
Private company shares.
Private equity and venture capital investments.
Intellectual property.
Art and collectibles.
Aircraft and yachts.
Loans and other contractual rights.
Some assets are relatively straightforward to administer. Others require specialist knowledge, ongoing oversight and coordination with advisers in multiple countries.
What are bankable assets?
Bankable assets are financial assets that can typically be held and administered through banks or investment custodians.
Examples include:
Cash.
Listed equities.
Government and corporate bonds.
Mutual funds.
Exchange-traded funds (ETFs).
Public market investment portfolios.
These assets generally have established custody arrangements, regular valuations and relatively standard administration processes.
Many trusts hold predominantly bankable assets, making administration comparatively straightforward.
What are non-bankable assets?
Non-bankable assets are assets that cannot usually be held through a standard investment custody platform or require more specialised administration.
Examples include:
Family businesses.
Private company shares.
Commercial property.
Residential property.
Private equity interests.
Venture capital investments.
Intellectual property rights.
Fine art and antiques.
Wine collections.
Aircraft.
Yachts.
Agricultural land.
Mineral rights or other natural resource interests.
These assets often require active administration rather than simple safekeeping.
Why are non-bankable assets more complex?
Unlike listed investments, many non-bankable assets require ongoing operational decisions.
For example:
A family business may involve shareholder meetings, dividend decisions, capital raisings and succession planning.
A commercial property may require lease negotiations, maintenance, financing and insurance.
An art collection may require specialist valuation, conservation, storage and lending arrangements.
An aircraft or yacht may involve registration, maintenance contracts, insurance, financing and regulatory compliance.
Intellectual property may require licence management, royalty collection and renewal of legal protections.
Rather than simply holding an asset, the trustee often needs to coordinate with lawyers, accountants, investment advisers, property managers and other specialists.
Can a trust own a family business?
Yes.
Trusts are frequently used to hold shares in private companies and family businesses as part of long-term succession planning.
This can help provide continuity of ownership across generations while allowing the business itself to continue operating under its own directors and management team.
Business-owning trusts often require a trustee that understands corporate governance, shareholder rights and succession planning, in addition to traditional trust administration.
Can a trust own property?
In many jurisdictions, yes.
Trusts commonly hold:
Family homes.
Holiday properties.
Commercial buildings.
Investment property portfolios.
Agricultural land.
Property ownership often involves additional responsibilities such as tax reporting, financing arrangements, maintenance and local regulatory compliance.
Where property is spread across several countries, administration can become considerably more complex.
Can trusts hold art and collectibles?
Yes, where permitted by the relevant jurisdiction and trust structure.
Many internationally minded families hold collections including:
Fine art.
Sculpture.
Jewellery.
Watches.
Classic cars.
Wine collections.
Historical artefacts.
These assets often require specialist valuation, insurance, storage and succession planning.
In some cases, collections also have cultural or family significance beyond their financial value.
Can trusts own intellectual property?
They can.
Intellectual property (IP) includes assets such as:
Patents.
Trade marks.
Copyright.
Software.
Licensing rights.
Royalties.
For entrepreneurial families, intellectual property may represent a substantial part of family wealth.
Administering these assets often requires coordination with specialist legal and commercial advisers.
Can trusts hold aircraft and yachts?
Yes, in appropriate circumstances.
These assets often involve:
Registration requirements.
Insurance.
Financing.
Crew arrangements.
Maintenance.
Cross-border operating rules.
Their administration is typically more specialised than administering financial investments alone.
Why trustee capability matters
Not all trustees administer the same types of assets.
Some focus primarily on investment portfolios and other financial holdings. Others regularly administer structures that include operating businesses, private investments, property and other non-bankable assets.
If your trust is expected to hold more complex assets, it is worth asking practical questions such as:
Do they regularly administer assets like these?
How many similar structures do they oversee?
Do they have experience coordinating specialist advisers?
Can they support assets located in multiple jurisdictions?
How do they approach valuation and reporting for illiquid assets?
Are senior professionals involved when significant decisions arise?
Experience with complex assets is often built over many years and can become increasingly valuable as family wealth evolves.
Thinking beyond today's assets
Many families establish trusts that are intended to last for decades.
The assets held today may look very different from those held twenty years from now.
For example, a trust that initially holds cash following the sale of a business may later acquire:
A new operating business.
Investment property.
Venture capital investments.
Philanthropic assets.
Art collections.
Intellectual property.
Choosing a trustee that can accommodate a broad range of asset types can reduce the need to revisit administrative arrangements as family wealth changes over time.
Common questions
Can one trust hold different types of assets?
Often, yes.
Subject to the trust deed and applicable law, a single trust may hold a combination of financial investments, property, private businesses and other assets.
Are non-bankable assets always more expensive to administer?
Not necessarily, but they often require more specialist expertise and greater ongoing involvement than listed investment portfolios.
The appropriate level of administration depends on the nature of the asset and the family's objectives.
Should trustee capability influence the type of assets held?
Generally, the family's objectives should determine the assets held within the trust.
However, when selecting a trustee, it is sensible to consider both the assets the trust owns today and those it may hold in the future.
Conclusion
Trusts are capable of holding far more than cash and investment portfolios. They are frequently used to own family businesses, property, private investments, art collections, intellectual property and other valuable assets.
These holdings often require a different level of expertise from traditional investment administration. For families with complex or internationally located assets, it is therefore worth considering whether a trustee has genuine experience administering the types of assets involved, coordinating specialist advisers and supporting long-term ownership across multiple jurisdictions.
The most suitable trustee will depend on the family's circumstances, but ensuring their capabilities match both the current and future assets of the trust is an important part of the selection process.