Guide to the Family TrustA trust can be created during your life-time or after you have passed on to the great beyond to ensure that part or all of your property assigned in this trust is well managed and distributed to your beneficiary or beneficiaries in such a way as you want this to be done. A family trust otherwise known as revocable living trust is a trust that is set up during the life of the settlor and that can be amended or revoked as this person deems fit.This trust is a legal arrangement where you; the trustor, also known as the settlor entrust part or all of your property to someone else; the trustee on behalf of others; the beneficiaries. Property in this regard may include: cash, stocks, bonds, real estate, et al. Apart from the family trust you equally have other types of trusts, which include: testamentary trust, unit trust, and charitable trust just to mention a few. The testamentary trust also known as will trust is so known due to the fact that this trust is only created upon the death of the settlor or trustor. Now the settlor of a testamentary trust can set up this trust in such a way as to make himself or herself both as the trustee and the beneficiary all at the same time in the meantime provided this is allowed by the state law. This may be done in order for this person to be able to draw funds from his/her trust when such need arises. However, to prevent this kind of situation it is better to structure your finances properly or seek other means of funding such as life insurance settlement to meet your day to day financial obligations. But what do I mean by a life insurance settlement? It is a financial undertaking that involves the selling of a life policy by its owner to a third party for an amount that is more than the cash value of this policy, but less than its asking price. Life insurance settlement allows seniors or the elderly who are no longer in need of their life policies to not just end up by relinquishing same to the insurance providers, but to enjoy cash rewards where they qualify for such by selling them to third parties. Typically to qualify for life settlement you need to meet certain criteria that include: you must be at least 60 years of age, your premiums must be less than 8% per annum, etc. Okay back to trusts; one wonderful benefit of family trust when set up properly is that it can bypass probate. This, however, does not make family trust the best type of trust in one and every situation as each type of trust has its pros and cons. Also, tax breaks are not necessarily an automatic feature of trusts. Trusts are set up while you are still alive or after you have transcended this world so as to ensure that your property, which you have assigned in the trust, is properly managed and given to the beneficiary or beneficiaries as the case may be in accordance with your expressed will. A family trust also known as revocable living trust is a trust, which is created while trustor is alive and this can be revoked or amended whenever this person wishes to do so. | ||
|
|