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.