A trust is a legal agreement between Trustee and Trustor. In which trustor gives the right to the trustee to hold the title to assets for the welfare of 3rd party.
Where you hear the word “trust” or “trust fund”. The first thing comes in mind is the wealthy family. That inherits it from generation to generation within a family members.
But now everyone can benefits this trust without being a family member. How??
It greatly expands options to shield your wealth from taxes or to pass it to your children.
Trust can be greatly used by the economical background families as it give benefits in the era of corona virus. It give you the financial that can helps you to attain a good wealth habits and helps you to gradually build your money.
It determines that how person money managed and processed when person is alive or dead.
Categories of trust
You may choose a category of trust that fits from these below categories. There comes 3 categories and a comprehensive details of it.
Living or Testamentary:
1. A living Trust:
It’s a document in which individual assets are provided as a trust for individual use and later it passes to beneficiary when individual dead.
2. A testamentary Trust:
It is a kind of will trust, specify the designation of the individual’s property to his family or others.
Revocable or Irrevocable:
1. A revocable trust:
It is a trust that can be changed or terminated by customers.
2. Irrevocable trust:
it is a trust that can never be changed or terminated once it’s established.
Funded or Unfunded:
1. Funded trust:
In funded trust, trustor has to put assets in it in his lifetime. Whereas the un-funded trust do not need any fund added on to it.
2. Unfunded trust:
But later on an un-funded trust become funded but here required a fund or assets.