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Term of the Day: Trust

14 Mar

Legal entity created by a party (the trustor) through which a second party (the trustee) holds the right to manage the trustor’s assets or property for the benefit of a third party (the beneficiary).

The four main types of trusts are:

(1) Living: trust created by the trustor while he or she is alive.

(2) Testamentary: trust established through a will and which comes into effect (is created) when the trustor dies.

(3) Revocable: trust that can be modified or terminated by the trustor after its creation.

(4) Irrevocable: trust that cannot be modified or terminated by the trustor after its creation.

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Posted by on March 14, 2013 in Uncategorized

 

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