The Chancellor would find it “unacceptable” that the rightful owner could go back to his word and deny the claims of the crusader (the “real” owner). Therefore, he would find for the cruise ship back. Over time, it was learned that the Court of Chancery would constantly recognize the assertion of a returning crusader. The rightful owner would keep the land for the property of the original owner and would be obliged to return it to him upon request. The crusader was the “beneficiary” and the familiar of the “agents.” The term “land use” was coined and over time became what we know today as confidence. If one of these criteria is lacking, there is no trust. Therefore, each document (whether it is a formal confidence document or a declaration of confidence) must indicate these essential parts: settlor, property, trustee and beneficiary. Specific type of trust. Trusts are available in many variants. Regardless of that, when building a position of trust, you need to decide what kind of trust you need and make sure that you follow all the rules relating to this particular type of trust, to ensure that it is correct and legal and to implement your intentions. Because information is often insufficient, informal trusts can create difficulties for both the agent and the trusted person in the event of a dispute over the management or distribution of the trust`s assets or income.
Take, for example, a parent who establishes informal trust in their minor child. When the child turns 18, he or she will want to receive the money in person to spend it as he wishes. The parent disagrees and thinks he will waste the funds and, as an agent, decides not to distribute the funds. Since there is no fiduciary document indicating anything else, the child would have the right, at the age of majority, to ask the Court of Justice to pay the funds to him. This describes a trust in which the original creator of the trust no longer has “control or domination” over the trust`s assets. The person who creates this type of trust cannot be designated as an agent because the agent must be able to exercise control or control over the trust`s assets. It is a common strategy for protecting assets from credit problems or as a tax-saving strategy. It is a well-known way of transferring a person`s wealth to beneficiaries. Irrevocable trust. Unlike a retractable trust, this type cannot be amended or revised until the end of the agreement. The termination of the trust can only take place with the agreement of the beneficiary. Note that the rating agency has made an administrative concession with regard to the allocation of the child tax.
If these funds, received by a parent, are deposited into an account that must be held in trust for the child, the allocation of these funds does not take place. For this reason, it is advisable to separate these funds from other funds (which can be allocated).