Introduction to Trusts
Essentially, a trust is a transfer of one person's property (such as shares or money) into the hands of another person. The person to whom the property is transferred to is charged with the duty of managing that property for the benefit of a third party or group.
There are three parties to trust:
1.: The person who establishes or sets up the trust that is then to be administered by the .
2.Trustee: The person, or company (a trust company) named by the Settlor to manage the property that has been transferred into the trust in accordance with the terms of the trust document.
3.: The person or persons who will receive the benefits of the trust, be that income or eventually the property itself (such as the funds, shares, or real estate).
A "trust document" is created In order to sort out the legal details associated with the trust, including the amount of power to give to the trustee. This document limits what a trustee can and cannot do with the property.
Due to the varying nature of trust documents, there are many different types of trusts which you will learn about in this section. You will also learn about the 21-year rule, which is important when considering with trusts.
INSERT IMAGE: Of a basic trust. Seen as "trust image" in Powerpoint IMAGES folder. Very rough sketch but gives the basic idea.