As a professional, it`s important to understand the technical terms used in legal documents. One such term is “trust under agreement.”
A trust under agreement is a legal entity that is created when a person establishes a trust through an agreement, also known as a trust deed or trust instrument. The agreement outlines the terms and conditions of the trust and sets forth the responsibilities of the trustee. It also establishes the beneficiaries of the trust and how the assets are to be distributed to them.
One of the primary benefits of a trust under agreement is that it can be customized to meet the specific needs of the creator. For example, the agreement can specify which assets will be placed in the trust, how they will be invested, and when and how distributions will be made to beneficiaries.
Another benefit of a trust under agreement is that it can provide greater protection for the assets held in the trust. Since the assets are held separate from the individual`s personal assets, they may be shielded from creditors and lawsuits.
There are different types of trust under agreement, including revocable and irrevocable trusts. A revocable trust allows the creator to make changes to the trust agreement or revoke the trust altogether at any time during their lifetime. An irrevocable trust, on the other hand, cannot be changed or revoked once it has been established.
While a trust under agreement can provide many benefits, it is important to work with a qualified attorney to ensure that the trust is structured properly and that all legal requirements are met. Additionally, the trust must be administered correctly to ensure that the assets are managed and distributed in accordance with the agreement.
In conclusion, a trust under agreement is a legal entity that is created through an agreement between the creator and the trustee. It can be customized to meet the specific needs of the creator and provides greater protection for the assets held in the trust. However, it is important to work with a qualified attorney to ensure that the trust is structured and administered correctly.