1 / 13

TRUSTS Introduction

This overview of trusts explains their core concepts, focusing on the roles of the settlor, trustee, and beneficiary. A settlor transfers legal title to a trustee, who manages the property per legal duties and the settlor's instructions, ultimately distributing it to beneficiaries. Trusts serve various purposes, including protecting beneficiaries, offering flexible asset distribution, and providing management in cases of settlor incompetence. The Texas Trust Code governs existing trust laws, emphasizing considerations like costs versus benefits.

alodie
Télécharger la présentation

TRUSTS Introduction

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. TRUSTSIntroduction

  2. Basic Idea Settlor Legal Equitable Interest Interest Trustee Beneficiary

  3. Basic Functioning • Settlor transfers legal title to trustee (honest and reliable) and equitable title to beneficiary (deserving of windfall). • Trustee manages property according to legal duties and settlor’s instructions. • Trustee distributes to beneficiaries according to settlor’s instructions. • Trust ends when duties complete.

  4. Purposes and Uses of Trusts • 1. Provide for and protect beneficiary • Minors • Incompetents • People without management skills • Spendthrifts

  5. Purposes and Uses of Trusts • 2. Flexibility of asset distribution • Spread benefits over time. • Give trustee discretion whom to pay and how much to pay. • Set standards. • Impose conditions.

  6. Purposes and Uses of Trusts • 3. Protection against settlor’s incompetence • The “stand by” trust

  7. Purposes and Uses of Trusts • 4. Professional management of property

  8. Purposes and Uses of Trusts • 5. Probate avoidance.

  9. Purposes and Uses of Trusts • 6. Tax benefits

  10. Warning! • Trusts, although very helpful, are not always worth the cost, expense, and hassle.

  11. Texas Trust Legislation • 1. Before 1943 • Case law • Sparse statutes

  12. Texas Trust Legislation • 2. April 19, 1943 to December 31, 1983 • Texas Trust Act

  13. Texas Trust Legislation • 3. January 1, 1984 to present • Texas Trust Code • Part of Property Code • Trust legislation is also found in many other places.

More Related