Private Trust Creation
Private trust is becoming more common now. Trusts are set up to provide certain benefits for all concerned and mainly for Protection of assets for the beneficiary. The property in the trust is managed by a trustee. Usually, this is someone who is good at handling money. It can even be a parent or a trust company. Having a trustee in charge means that the beneficiary cannot squander the property; it is protected for his benefit. You can set up a private trust either while you are still alive or when you die. It exists when one person or a trustee holds and owns property for the benefit of another person or a beneficiary.
The key elements of a private trust property are the settlors, the trustees, the beneficiaries, the trust deeds, and the trust’s assets.
The terms and conditions under which a private trust is established and maintained are set out in its deed.
The trust is established by the trust’s settlor and trustee (or trustees) signing the trust deed, and the settlor giving the trust property (the “settled sum”) to the trustee.
The settlor’s function is to give the assets to the trustee to hold for the benefit of the trust’s beneficiaries on the terms and conditions set out in the trust deed. The settlor executes the trust deed and then, generally, has no further involvement in the trust.
The trustee is responsible for the trust and its assets. The trustee has broad powers to conduct the trust, and manage its assets.
In a family trust, the trustees are usually Mum and Dad (or a company of which Mum and Dad are the shareholders and directors). Their children and any other dependants are usually listed as beneficiaries.
The goal of setting up a private trust property may vary but you can achieve personal poverty protection by being beneficiary of the trust property and to protect your assets from threats from various directions.