| A Trust is perhaps the best channel to keep your | | | | Both these types of trusts revocable as well as |
| money and other assets safe and secure for your | | | | irrevocable have their positive and negative aspects.o |
| future generations. It is a lawful creation that isolates | | | | There is also the Life Insurance Trust that ensures |
| your money for specific reasons. | | | | some kind of financial safety for the survivors in case |
| A trust is beneficial even when the grantor is alive and | | | | something happens to the donor. A life insurance trust |
| after his death. A grantor, settler or donor is the | | | | fund is better than a simple life insurance policy |
| person who is responsible for settling the trust. Trust | | | | because of the tax exemption. The trust fund is not |
| funds can be set up by single or a group of individuals. | | | | subject to the cumbersome Estate Tax while when |
| There are always some reasons behind forming a | | | | the beneficiaries receive the policy money it is |
| trust. These reasons vary from persons to persons. | | | | supplemented with this tax. Again there are pros and |
| Besides the grantor, there is or are trustees. These | | | | cons associated with both, it is recommended to take |
| trustees are appointed by the grantor and they take | | | | the advise of an attorney before reaching any |
| care that the trust is functioning according to the will or | | | | conclusions.o Bypass Trust is formed by a couple. |
| wish of the grantor. | | | | When either of the spouses die, the estate is |
| The first and the foremost benefit of a trust is the tax | | | | transferred to the other and is taxed and when they |
| saving. A trust can protect the grantor from paying | | | | both die, it is taxed again.o Spendthrift Trust- is a trust |
| huge taxes and claims. Money kept in abeyance in the | | | | that allows you the opportunity to let only those people |
| form of a trust can be helpful in your old age when | | | | benefit of the money that you think are worthy |
| you take retirement, when your children need money | | | | enough. In simple terms via this trust you can |
| for higher studies or for the secure future of your | | | | safeguard funds for the individuals you like, no one else |
| spouse or when you plan to do a venture in business | | | | can claim them.o Living Children's Trust- is the trust to |
| etc. The money enveloped in the name of trust is | | | | ensure a bright future for your kids. The grantor can |
| exempted from taxes like the estate tax and the like. | | | | add clauses in it like the child will get the funds only |
| The tax subsidy actually varies with the kind of trust | | | | when he turns a major etc. and till then the guardian |
| you have formed. | | | | (usually parents of the child) he appoints will take care |
| Types of Trustso If a person is alive and forming a | | | | of the children and the trust fund.o Charitable Trust |
| trust then such a trust is called a living trust. Every trust | | | | Funds- the best philanthropic idea to help the destitute |
| including the Living trusts can be bisected to form the- | | | | throughout your lifetime and even after your death. |
| Irrevocable and Revocable trusts. The former are | | | | Once you make your mind which trust to go for, make |
| those where the statements cannot be altered by the | | | | some profound thinking as to who will be its |
| grantor during his lifetime and even after that once | | | | beneficiaries and at what time, about the trustee, what |
| legally formulated and the in the revocable trusts the | | | | exactly are the terms and conditions, the taxes by the |
| settler can change his statements even after they are | | | | State, should the trust be revocable or not and so |
| legally penned down once till the time he lives. For | | | | forth. After all a trust is your lifetime investment...you |
| instance a trust set up by parents that provides for | | | | need not take any chances! |
| their minor children in case any problem grips them. | | | | |