BUSINESS TRUST AGREEMENT

Reasons why Free Sample Business Trust Agreement Form is so significant

A free sample business trust agreement form is a legal form that is vital in establishing the trust. In a trust, the ownership rights are transferred from the owner to a trustee and are then distributed among the beneficiaries. The owner is also known as the “grantor” or a “settlor”. The form contains the terms and conditions by which the assets are to be managed and are then circulated among the beneficiaries.

Entities in a trust

  • Settlor –

The owner of the assets is known as the settlor or grantor.

  • Trustee –

A trustee holds all the assets taken from the settlor on behalf of the beneficiaries.

  • Beneficiary –

The trustee manages the assets for these beneficiaries. He doesn’t hold all the assets legally but is given a title to the benefits of the assets.

Transfer of trust through different means

  • Free sample business trust agreement form as mentioned, transfers the trust from the owner to the beneficiaries through a medium of trustee.
  • A declaration of trust can also result in direct or indirect declaration of trust.
  • A trust can also be formed by means of a will.
  • A power of attorney can be useful in helping a trustee perform the duties on behalf of the settlor.

Advantages of a business trust

  • The owner of the assets can decide when and how his assets should be distributed to the beneficiaries after death. This in turn also reduces the estate taxes.
  • The trust agreement also helps in protecting the assets from lawsuits and creditors.

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