What is a trust?
In simple terms, a trust is a relationship in which a person, called a trustor, transfers something of value, called an asset, to another person, called a trustee. The trustee then manages and controls this asset for the benefit of a third person, called a beneficiary. An asset is any kind of property.
A trust is a intangible legal entity that is an agreement between the grantor and the trustee, naming the trustee to control the grantor’s property, or some of it, for the benefit of a beneficiary. The beneficiaries hold “equitable title” to those assets. The trust agreement defines the trustee’s powers and duties. Trusts of various types are frequently used in estate planning to achieve tax, financial, and personal objectives. The Trustee of the Trust is the person charged with keeping the assets safe, invested properly, and finally distributed to the Beneficiary at the proper time. The Grantor can pretty much decide how the money must be kept (in interest bearing accounts, in real estate, or only in government insured FDIC accounts, etc.), and when it may be distributed (when the beneficiary is 18 years old; or one half when the beneficiary turns 18 and the other one half when the beneficiary turns 21, etc.). The Grantor of the Trust can also be the Trustee of the Trust, if the Grant
• A trust is an agreement between you and the trustee. In the trust agreement you tell the trustee to manage and distribute the trust assets. You can think of a trust as a box which holds assets. For example, you can put cash, stocks, bonds, real estate or other assets into the box. The box comes with its own set of instructions. The instructions (the trust agreement) tell the trustee what to do with the trust assets that are in the box. The instructions only apply to the assets which are placed into the box.
A Trust is a legal entity and so are you. Because you and the Trust are separate legal entities, anything you transfer from you to the Trust becomes property of the Trust. The Trust then holds the property for your benefit, or for the benefit of those whom you designate. Please note that some Expat Countries do not all recognise the use of Trusts, your Will Writer will advise you accordingly.
