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Who runs a trust fund?

Who runs a trust fund?

Trust funds include a grantor, beneficiary, and trustee. The grantor of a trust fund can set terms for the way assets are to be held, gathered, or distributed. The trustee manages the fund’s assets and executes its directives, while the beneficiary receives the assets or other benefits from the fund.

Who are the grantor and beneficiary of a trust?

A trust is a legal arrangement through which one person, called a “settlor” or “grantor,” transfer assets to another person who acts as a custodian/manger over the trust assets (usually the grantor while they are alive and competent), called a “trustee.” The trustee holds legal title to the assets for another person, called a “beneficiary.” The …

What is the purpose of a personal trust?

A personal trust is a trust that a person creates for him or herself as the beneficiary. A personal trust can accomplish a variety of objectives. Personal trusts are separate legal entities that have the authority to buy, sell, hold and manage property for the benefit of their trustor.

Who are the advisors for a personal trust?

–Most personal trusts have dedicated investment advisors, who manage the assets within the trust, according to investment policies detailed within the trust agreement.

Who are the custodians of a personal trust?

The trustor will usually than seek out the advice of a trust or estate lawyer, to complete the establishment process. Next, the trustor would source a custodian, which is a financial institution responsible for safeguarding its customers’ assets.

What are legal rights does a trust beneficiary have?

Current and remainder beneficiaries have the right to be provided enough information about the trust and its administration to know how to enforce their rights. Right to an accounting. Current beneficiaries are entitled to an accounting. An accounting is a detailed report of all income, expenses, and distributions from the trust.

What does it mean to have a personal trust?

Updated Aug 5, 2019. A personal trust is a trust that an individual creates, formally naming him or herself as the beneficiary. Personal trusts are separate legal entities that have the authority to buy, sell, hold and manage property for the benefit of their trustors.

Who is the grantor of a personal trust?

To establish an irrevocable personal trust for the purposes of paying for their own or their children’s education, the trustor (also known as the “settlor” or the “grantor”) would first seed the entity with the assets she or he has set aside for this purpose.

What are the responsibilities of a trust trustee?

Trustees have an obligation to balance the needs of the current beneficiary with the needs of the remainder beneficiaries, which can be difficult to manage.