In the process of creating and further functioning of the trust, three main parties are usually involved:
1. Founder (Settlor) is a person who establishes a trust and transfers some of its assets to it. After the creation of the trust, the Founder completely loses control over it. If the Founder reserves the right to withdraw assets from the trust, change the terms of the trust agreement or control the actions of the Trustee, then such a trust may be considered fictitious.
2. Trustee (eng. Trustee) - a person who owns and manages the assets of the trust in favor of the Beneficiary or to achieve a specific goal. He carries out his actions in accordance with the trust agreement, as well as the principles of morality, justice and business ethics. The trustee is not entitled to receive direct benefits from the assets of the trust. The trustee most often acts as an individual. However, it may be a specialized private or public trust company.
3. Beneficiary - a person who is entitled to receive benefits from the assets of the trust, and, subject to certain conditions, the assets themselves. There may be several beneficiaries in a trust. Any Beneficiary has the right to demand from the Trustee the proper performance of the duties of managing the trust and, if necessary, may initiate appropriate legal claims. The courts of Great Britain and jurisdictions, which have taken English law as the basis, have many years of practice protecting the rights of the Beneficiaries, therefore violations by Trustees are very rare.
You will immediately begin to think more broadly, owning complete information. You can find out even more interesting information about this topic and not only - https://en.wikipedia.org/wiki/Trust_(business)
Comments