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Trust Loans to Beneficiaries: A Topic of Interest The minimum interest rates on loans to beneficiaries (as established by the IRS) are generally much lower than what a commercial lender would offer A beneficiary obtaining a mortgage loan from their trust, as opposed to a commercial bank, generally could enjoy a substantially discounted rate of interest
Trust Loans to Beneficiaries: A Topic of Interest obtaining a mortgage loan from their trust, as opposed to a commercial bank, generally could enjoy a substantially discounted rate of interest The savings that would accumulate over the life of such a loan could amount to a substantial financial benefit, while never requiring a distribution Loans can also serve as a means of furthering the
The Difference Between Directed Trusts vs Delegated Trusts The lesser known trust advisers are the Trust Protector and the Special Holdings Adviser The Trust Protector is typically put in place to direct the trustee with regard to more administrative type actions such as a change of trust situs, amendment of the trust document, and the removal and replacement of other fiduciaries
Modern Directed Trust Language However, should there ever be a time when no Investment Adviser has been appointed to direct the Trustee, the Trust Protector shall exercise all investment authority under the trust until such time as a successor Investment Advisor can be appointed Communication Communication is perhaps the most important aspect of the directed trust
2012 CTC Newsletter - Commonwealth Trust Company These may or may not be the intentions of the settlor Support and maintenance are often considered to be synonymous terms Not limited to the bare necessities of life, these terms can be interpreted to include mortgage payments, life insurance, vacations and even the needs of family living with the beneficiary
What is a Directed Trust - Commonwealth Trust Company A directed trust is a flexible and powerful tool for managing trust administration and providing for the needs of beneficiaries Full control over who the Trust Advisor is means that the person with the most knowledge of the values and day-to-day needs of the settlor and beneficiaries is the decision maker — providing valuable peace of mind
What to Think About When Making a Trust Silent By choosing the right representative and setting up the trust with the proper considerations in place, a silent trust can help you create a legacy that safeguards assets, preserves family dynamics, and promotes financial well-being for future generations Commonwealth Trust Company is pleased to provide this article as a guide
Cryptocurrency and Trusts | Commonwealth Trust Company In the trust relationship, it is a trustee who owes a fiduciary duty, illustrated by the manner in which it safeguards trust assets on behalf of trust beneficiaries and generally administers the trust in a manner consistent with the terms of the trust instrument A fiduciary duty is the highest level of duty that one can owe to another person
Trustee Services | Commonwealth Trust Company The concept of a trust is that legal ownership of a portion of an individual’s assets are transferred to the trust The new owner of the assets is the trust and its trustee, while the beneficial ownership (or the right to enjoy the benefits of the assets) is transferred to the beneficiaries (that individual or class of individuals named
Tax Cuts, and Sunsets, and Bears, Oh My! - commonwealth-trust. com It may also be a good time to consider exercising outstanding lifetime powers of appointment over existing trusts by appointing assets into a new trust with more modern terms If modification of a trust is needed, states like Delaware can offer non-judicial options for effecting those updates to an existing trust under the right circumstances