Trusts

A trust is known as an arrangement where by property or money is owned and managed by an individual, group of people, or organization to benefit another.  Created by a settler, a trust basically entrusts an individual (or individuals) to some or all of a person's property.  Legal owners of a trust property are also known as the trustees.  They are obligated to hold the property for the benefit of one person or more or for organizations, which are typically specified by the settler.  Other terms for the word "settlor" in this case are granter, donor, and creator.

Do you need more information about trusts?  A Capital Investment Advisor can help point you in the right direction and give you to knowledge you need regarding trusts.  Using a trust to ensure your loved one’s are financially secure in their future is an important decision for all those wishing to play a part in their family’s extended financial future.

Beneficiaries are the "beneficial" owners of a trust property and the trustees owe a fiduciary duty to them.  The trustor creates a trust to benefit one or other individuals.  Commonly, a trustor is also called the creator of the will, the donor, grantor of the trust, or in legal terms, the settlor.  The persons or person involved in distributing these funds per the agreements of the settlor is the trustee or trustees.  The trustees then disperse the funds, property, or other assets to the beneficiary according to the will and written arrangements and desires of the trustor.  Governed by local law and governed by terms of a trust document, the trust is written in deed form most of the time.

Who can be a trustee?  This can be either a legal entity (such as a company) or an individual person.  In some cases, there are multiple trustees.  Trusts are very flexible in the nature of their terms and agreements, however, the intentions and ideas behind creating a trust a generally similar.  Using professional financial assistance is of the utmost importance in these matters.  The majority of trusts are similar to deeds in that this agreement is binding and legally enforceable.  Contact a capital investment adviser for more advice and information on trusts.

Do you have questions about Trusts? Contact one of our Capital Investment Advisors with your questions about Trusts to get the answers you need to make informed financial decisions.

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