Trusts

A Trust is a legal arrangement whereby a person (the “settlor”) gives property to another person (the “trustee”) to hold for the benefit of one or more persons (the “beneficiaries”). Trusts established while a settlor is still alive are called “inter vivos trusts.” A legal document which sets out the terms of an inter vivos trust is usually necessary. “Testamentary trusts” are trusts that are created by Will and arise on death.

The terms of the trust can provide for the payment of income or capital or both to the beneficiaries. Either the interests of the beneficiaries can be fixed, or discretion to allocate the income and capital among the beneficiaries can be left to the trustee.

The trustee is the legal owner of the property held in the trust and has the authority to control the management of the assets although the beneficiaries of the trust have an interest in the trust assets. The trustee’s obligations include making decisions about the investment of the trust assets and preparing and filing tax returns on behalf of the trust. As a fiduciary, the trustee has a duty to act in the best interests of the beneficiaries.

Additional benefits of a Representation Agreement include:

• Alter Ego Trusts
• Joint Partner Trusts
• Testamentary Trusts

Contact Stephen Miller for more information.

Located in: Wills & Estates