Estate Planning as a Career

“Put your assets into Trust Funds,” this is a common advice that we hear from a lot of people. Some say that Trusts have a lot of advantages while some say that Trusts are only for wealthy people and so on. As a matter of fact, there are a lot of misconceptions with regards to Trusts. While many people give out advice to invest in Trusts, a few only bother to explain what a Trust Fund is.

Picture this: A ship is traveling through the sea. The Captain and his subordinates are in charge of the ship and its passengers. It is their duty to read the map, steer the wheel, and look out after everybody in order to reach the harbor successfully. Now, think of the ship as the Trust Fund, the Captain and his subordinates as the trustees and the passengers as the beneficiaries.

Based on the sample given above, we can say that it is certainly more than a device, a concept or a ship. Family Trust Funds is like a group of relationships where the creator of the Trust, also known as the Settler has relationship with other people that they place to run the Trust for them. People who do the task of running the Trust are called the Trustees. These trustees have a relationship with the Beneficiaries or people who have the Trust set up for them.

If you come to think of it, a Trust is like a chain where the settler puts their faith and money in the Trustees to run the trust. The Beneficiaries put their trust in the Trustees to watch out for asset of the Trust and to act fairly serving the interest of all parties involved. Legally, a Trust is composed of equitable responsibilities with Trustees that owe obligation to watch out after a certain property that they have control so that the Beneficiary can benefit from it.

Length of a Trust

The question now is, when will all these relationships end?

There are two ways to end a Trust. First (more…)