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| Asked by:
Anonymous on Apr-30-2008 01:57:14 | |
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.png) | Setting up a Trust |
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| Addtional Information |
| I'm in the process of applying for insolvency as my business went bust - Does anyone know if I can protect bank account, vehicles, etc by moving them into a new trust (don't have an existing trust, but would consider opening one) |
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| Answer
1 Contributor: prophetess on May-02-2008 13:22:04 |
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Recommend prophetess ] Trust Points: 1 |
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you never mentioned what kind of trust?
There are three people involved in setting up a trust fund. The first is you, the grantor (also called a settlor) who sets up the trust fund in someone else’s name. The second is the beneficiary: the person, entity or organization in whose name the trust fund is created. The third is called a trustee, and is the person who is responsible for managing the trust fund. You can hire a professional attorney or financial consultant to be the trustee, or you can allow a close friend or family member to do it instead.
As mentioned above, you don’t have to be a millionaire to set up a trust fund for friends or family. Many people do it these days and for a variety of reasons, which include:
- A method with which to avoid the hassles of probate court.
- A way to ensure the proper management of your assets.
- To make sure that family or friends are taken care of.
- To simplify the resolution of estate taxes.
When researching the methods with which to set up a trust fund, you will want to consider the two basic forms: testamentary and inter vivos. A testamentary trust fund is an “after death” trust fund which is not available to the beneficiary until the grantor has passed away. An inter vivos trust fund is a “living” trust which goes into effect while the grantor is still alive.
There are different reasons to use both types of trusts, depending on your personal situation. Most people use living trusts when they want their loved one to have access to their trust fund at a certain time, regardless of whether or not the grantor is still alive. You might want to use a testamentary trust fund, however, if you are simply looking to take care of loved ones after you have passed away.
their is also an education trust fund too, this is why I am asking, you never stipulated which kind you meant.
To establish a trust fund of any kind there are certain things that you are going to need.
Some of these things are:
" Documentation specifying your wishes
" A list of all the beneficiaries
There can be more than one
" A list of possible trustees
You will pick one but they may decline when the time comes so it doesn't hurt to have a back up. This way you still have control over who is chosen to take care of the trust. If you are setting up a living trust it is possible for you to be named the trustee, but you will still need to choose a successor
" Documentation of the terms of the trust
You will need to decide what the trustee is and is not allowed to do | Report
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