Guide To The Family Trust
Guide To The Family Trust
Guide To The Family Trust
A trust can be created during your life-time or after you have passed on to the great beyond to ensure that part or all of your property assigned in this trust is well managed and distributed to your beneficiary or beneficiaries in such a way as you want this to be done. A family trust otherwise known as revocable living trust is a trust that is set up during the life of the settlor and that can be amended or revoked as this person deems fit.
The trust is a legal agreement that you; otherwise known as the trustor or settlor give custody of part or the whole of your estate to another; the trustee on behalf of others; who are the beneficiaries.
Estate in this context could include: real estate, cash, bonds, stocks, etc.
Besides family trust there are also other kinds of trusts and they include: unit trust, testamentary trust, and charitable trust to mention just a few.
Testamentary trust is also known as will trust as this trust comes into being upon the passing on of the trustor or settlor. Alright the trustor of a testamentary trust may set up the trust such that he or she as is the case will be the trustee and beneficiary in the mean time if the state law permits this.
The person may have done this so that he/she may be able to withdraw money from the trust when the need arises to so. However, this can be prevented if this person structures his/her finances well. Alternatively, this person may seek funding elsewhere for instance through life insurance settlement if the person has a life policy.
But what is a life insurance settlement? Well this is a financial arrangement, which involves selling one's life policy by the owner to some other party (that could be a corporate body or individual) for money that exceeds the cash value of the policy in question, but less than the policy's asking price.
Life insurance settlement allows seniors or the elderly who are no longer in need of their life policies to not just end up by relinquishing same to the insurance providers, but to enjoy cash rewards where they qualify for such by selling them to third parties.
Basically to qualify for this settlement you have to meet particular criteria and they are: You have to be 60 years at least, your premiums have to be less than 8% per year, et al.
Now going back to family trust; one benefit you can get from this trust is that it can bypass probate. However, this doesn't make family trust right in every situation as each trust type as its rewards or benefits.
In addition to this, tax breaks are not an automatic benefit with trusts as some might suppose.
Nevertheless, this does not mean you should make use of a family trust in every situation since there are other types of trusts designed for other situations.
Also, do not suppose tax breaks are an automatic feature of trusts as this is not the case.
FamilyTrustSecrets.com has the answers to all the questions that you were afraid to ask about Life Insurance Settlement! To make sure that you will not have to settle for anything less than the full story on Family Trust and related topics, check out the site right away !
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