Trusts Law Essay Writing Help

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A trust is a three party fiduciary relationship in which the 1st party is the settler or the trust who transfers a property or sum of money to the 2nd party called trustee for the benefit of the 3rd party called beneficiary. At least two of the three parties must be business entities or different individuals. In trust the trustee is the legal owner of the property as fiduciary for the beneficiary who is equitable owner of the property. Therefore trustees have a fiduciary obligation to handle the trust to the advantage of the equitable owner and they must present a regular accounting of trust expenditure and income.
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How to Set up a Trust Fund

1) Catalog your assets as it is not required to transfer all the assets into your trust.
2) Select the trustees
3) Name the beneficiary or beneficiaries.
4) Create the trust
5) Look into professional trust management firms.

How Does Money in a Trust form Work?

Once someone place assets in the trust, they are no longer theirs. It is handled by a trustee then. A trustee is a bank or attorney or any other entity that is set up for this purpose. Since the assets are transferred, they no longer need to pay the tax or any money made from the assets.

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