There may be a number of reasons why a trust is created. It may be for tax or estate planning or for privacy or asset protection. Regardless of the reason, there are a number of different types of trusts available to help you achieve your goal. To find a trust lawyer or law firm, click here and select “Estate Law” as the area of law in which you need help.
A trust is a legal arrangement whereby the legal owner of the property (the settlor) or a third party (the trustee) holds the property for the benefit of another party (the beneficiary). The settlor or the trustee must then do what is in the best interest of the beneficiary when dealing with the trust property. They will usually be guided by a written agreement (the trust instrument or deed) which specifies the parties and how the trust is to be governed.
Normally, a trust is created through the express intention of the settlor, which is normally done through a trust instrument or deed. A trust can also be created by oral declaration, will or court order.
The following is a list and a brief description of some of the types of trusts that you may come across:
- Express Trust. An express trust is what is normally thought of when referring to trust and is created over some or all of the settlor’s property through the express will of the settlor (usually in the form of a trust instrument or deed).
- Revocable Trust. As the name suggests, a trust that can be amended, altered or revoked by the settlor at any time.
- Irrevocable Trust. In general, a trust that cannot be amended, altered or revoked by the settler.
- Testamentary Trust. A trust that is created in a will and comes into effect after the person’s death.
- Constructive Trust. A legal remedy where the court orders the creation of a trust in respect of certain property between two parties, one of which has legal title to the property but should not be allowed to retain the benefits of the property.
- Dynasty Trust. A trust through which a settlor passes on property to his or her grandchildren.
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If you are looking for a trust lawyer or law firm, click here and select “Estate Law” to find the lawyer that best suits your needs.