Modern law gives us a lot of flexibility and the renewed use of specific instruments in order to go about the management and protection of our assets and wishes. Paramount to those tools is the trust. This is a short and quick explanation of what this is and how to use it.
Trust is an agreement whereby you charge an individual––the Trustee–– with carrying out certain instructions to the benefit of a third party. These instructions may involve all sorts of assets, i.e. property, money, or soft assets such as rights. The force of a trust is such that in certain cases––i.e. testamentary trusts–– the agreement remains in force after the death of the person who gave the instructions. The Trustee is forced to comply with the instructions strictly and faithfully, and may only modify the use of the assets entrusted with the consent of the person who gave the instructions. The Trustee may not interpret the instructions as originally given.
Assets received by way of a Trust are not regarded as part of the Trustee’s own assets, and should be accounted for and managed separately from the Trustee’s assets or other trusts, so that under no circumstance affecting the Trustee may the assets held in trust be transferred. Likewise, no circumstances affecting you or the beneficiary may cause detriment to the trust property.