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That person is called the trustee. The trustee has the legal authority to handle the trust assets according to the provisions set forth in the trust.
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∙ 15y ago
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Can a future beneficiary borrow against his assets in trust?
If the trust is a spendthrift trust, then no, the beneficiary probably cannot borrow against it. It is up to the lender.
What would you think if a trustee asks you to sign away your rights to a trust so he can reinvest the money?
A person with assets sometimes decides to set aside some of those assets in a trust that will pay over the profits, or assets for the use and benefit of another person. A trustee is appointed to act in regards to the trust property. Generally, the power to reinvest the trust property is included in the powers of the trustee. A beneficiary would not be required to sign away rights as a beneficiary so the trust funds could be reinvested. The beneficiary is someone the donor cares about. The trust instrument, written by the donor, directs what the trustee may do with the trust property and how the payments must be made to the beneficiary. The trustee MUST follow the provisions of the trust unless the trust instrument allows her/him to use discretion. To your question: It raises suspicion that the trustee has asked that you "sign away your rights in the trust". You should seek the advice of an attorney who could review the trust and the actions of the trustee and advise you on how you should proceed in order to protect your interests as a beneficiary. Until then, sign nothing.
Can you have a trust and file for bankruptcy?
You can have a trust and file for bankruptcy but the more important question is whether you should given what is in the trust, who transferred the assets into the trust and who is a beneficiary of the trust. If you have set up a trust and have irrevocably transferred all of your interest to assets to the trust then there may be questions of whether the transfers were proper and allowable under bankruptcy law. If you are a beneficiary of a trust the question becomes whether your beneficial interest in the trust is protected when you file for bankruptcy. This will depend on reviewing the facts of how the trust and reviewing the trust documents.
In regards to finance what does the term irrevocable trust refer to?
In regards to finance the term irrevocable trust refers to trust that can not be changed or ended without permission of the beneficiary. The grantor removes all of his or her rights to both assets and the trust.
What is an offshore trust?
The concept of a trust is an arrangement whereby property is transferred from one person (the Settlor) to another person (the Trustee) who holds the property for the benefit of specific people (the Beneficiaries). A Trust Deed sets out the terms and conditions under which the Trustees hold the trust assets. It also outlines the rights of the Beneficiaries. A trust is not dissimilar to a will except that assets are transferred to trustees during lifetime rather than assets being transferred to executors on death. The Trust Deed is comparable to the will. Those unfamiliar with the trust concept may be concerned about transferring ownership of their property to a Trustee. This concern can be alleviated if the distinction between legal and beneficial ownership is properly understood and the trust is governed by sound law enforced in a reputable jurisdiction. See http://www.sovereigngroup.com/our-services/trust-services/introduction.htm for more details.
Can a creditor claim assets held for a beneficiary in trust in case of bankruptcy of the beneficiary?
Not if the trust was properly drafted by a professional.
Can the same person be both the beneficiary and the trustee of a blind trust?
No. The trustee has full control over the assets in the trust. In a 'blind trust' the trustee must be completely independent. If the beneficiary is the trustee then the trustee is not completely independent.
Can a future beneficiary borrow against his assets in trust?
If the trust is a spendthrift trust, then no, the beneficiary probably cannot borrow against it. It is up to the lender.
Can filing bankruptcy affect a living trust?
Yes. If the trust is not a true trust (i.e., the settlor, trustee and beneficiary are all the same person) or if the trust is revocable, the trustee can pursue the trust assets. If the debtor is the beneficiary of a living trust and can or has gotten a distribution of some of the trust assets, the trustee may be able go after the assets to the same extent the debtor is eligible to receive a distribution. It may be possible to negotiate a settlement of less than the full amount of the assets with the trustee.
What is the beneficiary in a trust?
the beneficiary in a trust is the person whom benefits from that which is held in trust.
Can there be a trustee and beneficiary to an irrevocable trust?
A trustee and a beneficiary are essential to a trust. Without a trustee and a beneficiary there is no valid trust. They should not be the same person.
What would you think if a trustee asks you to sign away your rights to a trust so he can reinvest the money?
A person with assets sometimes decides to set aside some of those assets in a trust that will pay over the profits, or assets for the use and benefit of another person. A trustee is appointed to act in regards to the trust property. Generally, the power to reinvest the trust property is included in the powers of the trustee. A beneficiary would not be required to sign away rights as a beneficiary so the trust funds could be reinvested. The beneficiary is someone the donor cares about. The trust instrument, written by the donor, directs what the trustee may do with the trust property and how the payments must be made to the beneficiary. The trustee MUST follow the provisions of the trust unless the trust instrument allows her/him to use discretion. To your question: It raises suspicion that the trustee has asked that you "sign away your rights in the trust". You should seek the advice of an attorney who could review the trust and the actions of the trustee and advise you on how you should proceed in order to protect your interests as a beneficiary. Until then, sign nothing.
Can same assets be left in a will and a trust?
If the deceased's will leaves assets to a person but places them into a "trust" for that person, yes, they can.
How do you find out if you are a beneficiary of a trust?
You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.You must ask the trustor, the person who made the trust. Otherwise, you need to wait and see if you are ever notified that you are a beneficiary of a trust.
Does your husband have to be your beneficiary on life insurance?
No. You can have anyone you want be the beneficiary. A trust, church, or any person you choose can be your beneficiary.
Does a trustee of a discretionary trust have to reveal the amount of the trust fund to a discretionary beneficiary?
A beneficiary of a trust has the right to an accounting as a way to make certain the trust assets are not being wasted or mishandled by the trustee. A trustee does not have the right to operate in secret. A court can order an accounting.
How can you legally escape inheritance tax?
Generally this is done by creating a Living Trust or other Trust entity to pass your assets through to a beneficiary.
