A Trust is an instrument set up by an individual [Settlor], placing his interest(s) in assets upon other person or corporation [Trustee], and the Trustee shall hold and administer the assets for the benefit of the Beneficiary in accordance with the terms and conditions of the Trust Deed.
The Settlor may designate specific terms and conditions in the Trust Deed. The Trust Deed may allow or prohibit the Settlor from amending or terminating the Trust at any time during his/her lifetime. The Trustee may have unlimited discretion to administer the Trust, allowing the Trustee to have the flexibility to administer the assets in light of the circumstances. However, the Settlor may on the other hand decide to provide limitations to the powers of the Trustee in administering the assets.
Many kinds of assets are capable of being transferred into the Trust, including landed properties, cash and stock investment etc.
There are a lot of benefits associated with setting up a Trust, namely:-
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Assets under the Trust shall not be regarded as the assets of the Beneficiary, and therefore, to the extent allowable by the law, assets of the Beneficiary shall be protected against the claims from his/her creditors; |
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A Trust will allow the Settlor to make early arrangement for distribution of his/her estate in accordance with his/her own wishes, providing the Settlor with the flexibility in making arrangement with his/her estate; and |
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| 3) |
Estate of the Settlor will not be affected by the complexities involved in the probate procedures, and the Beneficiary will be benefited from the estate within shortest possible time. |
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