A trust is a legal entity where a person/persons or company holds property in trust beneficially for others. There are several different forms of trust e.g. family discretionary trusts and unit trusts. Specific details can be obtained from your accountant, legal or other professional advisor. Click here to link to Mellor Olsson's website.
A way of holding money, property, or other assets that protects them from taxes, keeps property out of probate, and gives a measure of control over assets.
Trusts are used in many ways but particularly so where the policy is taken out to provide family protection or inheritance tax funding. Where the life policy is set up under trust the proceeds the proceeds are paid to trustees who then pass on to the beneficiaries in accordance with the terms of the trust deed.
A trust is a legal device for preserving and protecting assets.
basically, this is a legal structure whereby a trustee deals with property or assets, e.g., cash, stocks, bonds, etc., over which the trustee has control, for the benefit of persons called beneficiaries. There are two main types of trusts: living trusts and testamentary trusts. These trusts serve different purposes and objectives and can have different tax implications.
a relation between two people by which someone (the trustee) holds property for the benefit of someone else (the beneficiary)
Trusts are used in many ways and are often used with life assurance policies, particularly where the policy is taken out to provide family protection, inheritance tax funding, partnership and shareholder protection etc. If the life assurance policy is set up under a trust the proceeds are paid to the trustees who then pass them on to the beneficiaries in accordance with the terms of the trust deed. There are advantages in setting up the policy under a trust. These are, first, the proceeds are, subject to certain conditions, paid outside of the deceased's estate and therefore avoid any potential inheritance tax charge. Secondly, the trust funds can be paid to the trustees without the need for Grant of Representation. This means that the proceeds can be paid by the insurance company within a matter of days after production of the death certificate. The most commonly used trust for life assurance policies is a flexible power of appointment trust. This gives the settlor power to change beneficial interest and appoint new trustees during his/her lifetime. This is a complex subject and you are advised to seek professional advice before considering using a trust.
A legal title to property held by one party for the benefit of another.
A legal arrangement in which an individual (the trustor) gives fiduciary control of property to a person or institution (the trustee) for the benefit of beneficiaries.
A trust is an arrangement in which an owner transfers property rights to a third party who handles administrative, management and disposal functions on the owner's behalf. Real estate investment trusts manage properties and rents, while other trusts undertake custodial and management duties for corporate pensions. Testamentary trusts are involved in the execution of wills. The Trust Law, which defines trusts and their structures, and the Trust Business Law, which includes regulations for companies involved in the trust business, were enacted in 1922 and have been revised very little since then. Around the time when the Trust Business Law was enacted, several hundreds of trust companies were in business, including a number of unsound firms. As a result, the law maintains a strong regulatory tone. Based solely on the Trust Business Law, the Financial Services Agency does not currently allow the establishment of trust companies . In order for a company to be able to enter such operations, it has to obtain a banking license and then be approved for trust operations.
a whole web site could be filled with an exposition concerning the law of trusts. The concept of a trust is at the heart of many areas of law, including investments, charities, pensions, gifts to minors by will, and is simply the holding of assets by one person (the trustee) for the benefit of another (the beneficiary). Would that it were that simple! The law sets out strict rules as to what the trustee must and must not do in performing his or her duties, and also what liabilities they are subject to in terms of accountability, profiting from the trust and duties generally.
A fiduciary relationship under which one holds property for the benefit of another. The party creating the trust is the settlor or trustor, the party holding the property is the trustee, and the party for whose benefit the property is held is the beneficiary.
Can be created during lifetime or in a Will. The creation of a Trust enables appointees of the Settlor â€“ the Trustees â€“ to manage the assets, that the Settlor has put into the Trust, in accordance with the terms of the Trust. Trusts can be used either for the purpose of tax saving or to protect beneficiaries.