We’re talking about trusts.
Not the trust built two people (although that is important too!)
But trusts as an estate planning tool.
Trusts have no legal definition. It’s when a settler leaves assets to another party (beneficiary), with a 3rd party (trustee) responsible for distributing the assets.
Discretionary trusts is where the trustee can use discretion to distribute the assets – to whom, how, when.
A couple of trust facts:
- For tax purposes, trusts are treated as a person.
- To create or settle a trust, you need to transfer a physical object to the trustee (e.g. a coin, $5 bill).
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