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The distinction between Trust & Agency
Thursday, January 21, 2010
The distinction between a trust relationship & an agency relationship lies in the fact that a trustee holds a vested property interest whereas the agent does not; an agent will usually only have possession of the property on behalf of his principal, rather actual title. An agent may (although not always) owe fiduciary obligations towards the principle, & so will have similarities with the trustee in this regards, although fiduciary obligations imposed in a trust relationship will generally will be more rigorous than those applicable to an agency relationship.
The distinction between the trust and agency also well highlighted through their dealings with third parties. an agent who deals with third parties will rarely be liable to those parties because she is acting on behalf the principal, provide the dealing is within the scope of her powers. a trustee however, will always be liable to third parties for debts incurred in the course of running the trust unless she expressly exempts personal liability. Once the trustee pays out for expense associated with the proper management of the trust, she may be indemnified from the trust fund, or, if that is deficient, the beneficiaries personally.
Terms associated with Trust
Wednesday, January 20, 2010
Beneficiary- 1. a person entitled to benefit from a trust. The beneficiary holds a beneficial interest in the property of which a trustee holds the legal interest. A beneficiary was known as cestui que trust.2. one who benefits from a will.
Trustee- a person having a nominal title to property that he holds for the benefit of one or more others, the beneficiary. Trustee may be individual or corporate bodies & can include such specialist as judicial trustee, custodian trustee, & the public trustee.
Settlor- a person who creates a settlement. In a broad sense the term includes testators, in a more restricted sense it signifies one who settles property during his life.
Settlement- a disposition of land or other property, made by deed, will, or very rarely by statue under which trust are created by the settlor designating the beneficiaries & the terms on which they are to take the property
Testator- a person who makes a will.
Testament- a will, strictly speaking, a testament is a will dealing only with the testator's personal property, not his land.
Testamentary trust- a trust contained a will.
Testamentary capacity- the ability to make a legally valid will. Person under 18 & mental patient do not have testamentary capacity.
Testate- having left, at one's death, a legally valid will.
Legacy- a gift of personal property effected by will.
Legatee- the person to whom the legacy is given.
Donor- given or gift.
Donee- the person take/accepted the gift.
Objects of a power- person in whose favour a power of appointment may be exercised, potential appointees.
Personal representative- a person entitled to deal with a deceased person's estate in accordance with his will or under the rules relating to intestacy. Eg : executors & administrators of all discriptions.
Intestacy- the state in which a person dies without having made a will disposing of all his property.
Will- a document by which a person (called testator) appoints executors to administer his estate after his death & directs the manner in which it is to be distributed to the beneficiaries he specifies. To be valid, the will must comply with the formal requirements of the will Acts.
Codicil- a document supplementary to a will, which is executed with the same formalities under the will Act, & adds to varies, or revoke provisions in the will. It must be proved with the will.
Deed- a written document that must make it clear on its face that it is intended to be a deed & validly executed as a deed.
Covenant- a promise contained in a deed & is binding even if not supported by considerations.
Trust instrument- a deed under which property is vested in trustees upon trust to apply it for the benefit of the beneficiaries specified in the deed.
Devise- 1. a gift by will of real property, the beneficiary is called devisee. 2. to dispose of real property by will.
Devisee- the beneficiary will of real property.
Bequest- a gift by will of property other than land.
Bequeath- to dispose by will of property other than land. Read more...
Why do people set up trust ?
Monday, January 11, 2010
The reasons are :
(1)Assets held under Trust are not frozen upon demise.
(2)For the distribution of wealth, including periodical payment.
(3)To ensures the wealth is protected against lawsuits as well as creditors.
(4)The preservation of wealth.
(5)Fulfilling various personal objectives, including such as maintenance of dependents and education funds.
Examples of common usage of trust :
1) Distributing Wealth to Avoid Probate
Trust of this nature is useful when you have:
1. Minor children and spouse who is a homemaker or earning not as much as you
2. Special children requiring funds for medical, education and living expenses
3. Have a 2nd Family to provide for
4. Financing children’s tertiary education.
2) Protecting Wealth
Protecting Against Wasteful Beneficiaries
The Protector appointed will ensure there is no wastage of moneys receive under the Trust. Protector can stop disbursement of fund to undeserved beneficiaries.
Against Creditors of Settlor and Beneficiaries
Protector will instructs Trustee to stop the disbursement of fund whenany beneficiary has become a bankrupt.
Protecting Wealth Against the Settlor's Creditors
When a person becomes a bankrupt, usually an investigation by the authorities is done to recover assets transferred up to 5 years prior to bankruptcy. The suspicious transfers will be nullified to recover the assets to pay the creditors.
3) Protecting Wealth Against the Beneficiaries’ Creditors!
This is achieved by creating a Discretionary Trust when any of the beneficiary becomes bankrupt, he will no longer be entitled to the benefit under the Trust.
4) Preserving Wealth for Your Great Grandchildren
Preserving assets for your great grandchildren.
5) To cater funds for various family situations
For example, education and Maintenance fund for grandchildren, nephews etc
How to Become a Good Debater ?
Sunday, January 10, 2010
If you want to know how to become a good debater, please click the link below.
How to Become a Good Debater | eHow.com
General Principle about Trust
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..
Resume writing tips for law students
Monday, January 4, 2010
Top 10 Do's
1. Do limit your resume to one page, if possible. (This demonstrates your ability to write efficiently and succinctly.) A good resume is only one page.
2. Do tailor your resume to the specific employer, i.e., be sure to include skills and experience sought by that employer.(Different legal employers – e.g., public interest vs. civil law firm – do not necessarily seek the same skills/qualifications. You will have several versions of your resume.)
3. Do follow one of the acceptable resume formats. ( Reverse chronological or functional formats)
4. Before including anything on your resume, do ask yourself this: Does this information have relevance and significantly contribute to my presentation?
5. Do make sure that the telephone number you use on your resume is current and has a professionally appropriate voicemail message. (Note: background music is not appropriate for a professional voicemail message. And do not forget to make your e-mail address professional too.)
6. Do emphasize/prioritize your relevant legal experiences over non-legal work. (Grab the employer’s attention quickly.)
7. Do make sure your resume is easy to read, but use underlining, italics, bold and bullets for emphasis without going overboard or making your resume too distracting.
8. Do proofread (for accuracy, grammar, punctuation and correct telephone number).
9. Do have two other people proofread. (Perfection is key!)
10. Do regularly update your resume(e.g.:additional legal experiences, grades received, law school competitions).
Top 10 Don'ts
1. Don’t list personal information – your resume should be professional (e.g., do not reference marital status, children, religion, etc.).
2. Don’t list references on your resume or indicate “References Available Upon Request” (legal employers do not want to see references on your resume). Have a separate list available if requested.
3. Don't use personal pronouns (I, my, me) in a resume. Instead, use “action” verbs to start all phrases.
4. Don’t use the resume templates which come with most software packages. (They confine your ability to create your best legal resume.)
5. Don’t include an “Objective” section on your resume (which is not generally used for law clerk or lawyer positions).
6. Don’t use fancy fonts. (Times New Roman or Arial are both good choices at 11 or 12 font, depending on resume length.)
7. Don’t lie. Emphasize your strengths, skills, and qualifications, but never overstate your qualifications.
8. Don’t include your whole life’s history. (Remember: succinct and relevant.)
9. Don’t use passive voice.
10. Don’t use colorful paper (e.g., white, buff, muted gray or beige is standard).
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