A trust account is an account where funds are held to achieve a specific purpose, such as paying for a specific bill or issuing money in installments to a person or a place. Trust account holders are usually called trustees, while trust recipients are called trust beneficiaries.Know More
Some trust accounts are set up by people to dispense certain amounts of monies to loved ones over the course of their lives. For example, some people set up trust accounts that issue funds to their children or other dependents each month in the event of their deaths. These trust accounts are usually overseen by banking brokers who take a monthly or yearly percentage of the trust to issue the funds each month on behalf of the person that set up the trust.
Another type of common trust account is property tax trust accounts. These accounts are usually set up by real estate entrepreneurs that own multiple properties. Instead of keeping up with property tax monies on their own, these people set up trust accounts to fund the taxes so that they do not lose their investment properties due to non-payment of taxes.
It is important to note that trust accounts offer certain monetary benefits, such as immunity from estate taxes upon the death of the person that set up the trust account.Learn more about Financial Planning
Because unclaimed financial properties such as trust funds are considered abandoned after three years and turned over to state unclaimed property offices, claimants can search individual state unclaimed property databases, reports CNN. They can also search the compiled database maintained by the National Association of Unclaimed Property Administrators called missingmoney.com.Full Answer >
To set up a trust fund, individuals should contact a financial adviser at a bank or investment firm, determine the guidelines and specifications of the trust, and deposit assets into the account. A trustee removal clause can be filed as a provision of the trust fund.Full Answer >
A trust fund account is one that consists of bonds, stocks, cash, property and various other types of assets that can be set aside and inherited for financial security by an organization, such as a charity, or individual. Trust funds are established by grantors and managed by a trustee.Full Answer >
Drafting a special needs trust involves appointing a trustee, funding the trust and stipulating how the trust money should be spent, according to Bankrate. An alternative to a private special needs trust is a pooled or community trust, which combines and invests contributions from those with modest incomes, states Nolo.Full Answer >