A financial trust is generally thought of as primarily an estate planning tool, and for good reason -- most family's trusts are created with the intent of passing property easily and in a less-taxed fashion on to one's survivors. But there are many other purposes for trusts even in day-to-day family life:
There are more -- some stunningly complex -- uses for a financial trust, naturally, but it would take a trust lawyer to explain them to you, much less implement them for you.
A trust essentially divides the responsibility for a property (held by the 'trustee') from the ownership of the property (held by the ''beneficiary'). The trustee is obligated to manage whatever assets are held by the trust, including any financial instruments that the trust owns, but unless a trustee fee arrangement is written into the trust, doesn't benefit from the work they do on the trust's behalf. The conditions under which the beneficiary is able to access the trust's assets are also written into the trust, but other than following those conditions, the beneficiary doesn't have any responsibilities toward the trust.
Most often, a modern trust is a financial trust, meaning that the trust holds financial instruments and/or an amount of cash (as opposed to a trust that holds, for example, art or other solid assets.) This means that managing the trust is always an active obligation, because the trustee is expected to make the value of the trust grow over time.
Schmidt Law Firm has helped create and maintain many financial trust. If you think that a trust might be the right tool for keeping your property safe, we can assist you. Call us at 888-459-3077 and see if a trust is what you really need. If you want to learn more about estate planning you can click here now.
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