Posts
General Principle about Trust
Sunday, January 10, 2010
What is a Trust ?
A Trust is an estate planning instrument for an Individual to ensure the total protection of asset(s) is preserved for the beneficiaries while in the safe hands of the Trustee.
There are three parties involved in a Trust.
1. The settlor – person who sets up the Trust.
2. The Trustee – the person or a corporation who manage the Trust assets
3. The beneficiary – the person who receives benefits from the Trust
How does a Trust work?
The Trustee receives the assets from the Settlor and is legally obligated to hold and manage the assets for the enjoyment of the beneficiaries during the trust period set by the Settlor. It is commonly known as “Living Trust”
Who is the protector of the trust ?
A person appointed by the settlor with the following job scope:
1. Act as a watchdog for the settlor when he passed on
2. Advise the trustee on the needs of beneficiaries
3. Recommend payment to beneficiaries using Letter of Wishes
4. Has the power to remove and replace the Trustee.
To be continue..
1 comments:
The Trustee receives the assets from the Settlor and is legally obligated to hold and manage the assets for the enjoyment of the beneficiaries during the trust period set by the Settlor. It is commonly known as “Living Trust”.. case management software
Post a Comment