What You Need To Know About Trusts
A trust is a legal and written agreement between a settler (person creating the trust) and the trustee. This document allows a settler to transfer some assets to a trustee to manage them on behalf of their beneficiaries. A trust is essential for any asset protection or estate plan because it contains guidelines and procedures to be followed.
Over the past years, many trusts have exhibited common characteristics. For example, trusts include one or more trustees and several named beneficiaries. The responsibility to administer and carry out the terms of the trust is endowed to the trustee. The beneficiaries are entitled to the income or principle from the trust in the present or the future.
In previous years, trusts were mostly utilized by the affluent to maintain privacy and pass on their wealth to the succeeding generations. Currently, even ordinary people are making …