Trusts Essay Example | Topics and Well Written Essays - 750 words

Trusts - Essay Example There are a number of benefits where trust is concerned. For instance, specific terms can be made hence controlling who or when distributions can be made (Ramjohn, 8). Agatha was a renowned business woman in London who was believed to be without parents and grew up in the streets. She had a fleet of public transit buses, 20 business stores, 5 clothing lines, and 30 restaurants among others. As fate would have it, she was diagnosed with cervical cancer final stages. Like any other person would do, she knew that she had to leave a responsible person to manage the assets. Her firstborn son was business oriented. Her youngest daughter was barely 16 years old. In her trust therefore, she let his son benefit from the business stores and the public transit buses only when he would marry and have at least one child. The rest of the property was a trust for her daughter Eva, after completing her master’s level of education so that she would be at a better position to manage. This infor mation was taken with great amazement by her children as none of them had any idea in the first place how much their mother had left for them. She had not shown any signs that she was leaving anything behind for them as they knew that she owned nothing much. Meanwhile, the family lawyer was left in charge of all property. A trust that is properly structured can protect an asset the creditors of the beneficiary or beneficiaries who are not at a position to wisely manage their money. A trust can also be allowed to change from a public record and become private (Watt & Todd, 20). Robert was brought up from a very rich background. However, due to peer influence and the fact that his parents never denied him anything, he turned out to be an arrogant man and a drunk. Unfortunately, his parents were involved in a road accident and were pronounced dead at the arrival of the hospital. As the only child, he was placed on a trust for the family business, a top cream 5 star hotel, only when he would stop taking alcohol and own up. When Robert learnt about the trust, he was taken aback. He never would have thought that his parents would ever make him a beneficiary for anything due to his irresponsible behavior. It took him a few days and Robert sought ways of becoming sober. The board of the hotel was therefore placed in charge until then (Watt & Todd, 45). Types of trusts Marital Trust- this is whereby the beneficiary is the surviving spouse. Adam, a mechanical engineer working for Ford Motors Company, has been overly ill. At the time of his date, he made a trust for his wife as a beneficiary of all his businesses which was approximated to be about a $2,000,000. This was done by Adam without his wife’s knowledge with his reason being that she may not carry his wishes to terms. He made his wife the beneficiary so that she would be at a position to educate their two children, Paul and Eva. Adam knew his wife too well and there was no other kin he had in mind to carry such obligations rather than his wife. Adam had not given his wife reason to believe that he would place a trust on for her. At first, his wife thought it was a big joke the minute she learnt about the figure placed in her trust. That is the time that she realized how much her husband believed in her. Charitable lead trust- This kind of trust allows some benefits or assets to go to charity and what remains can go to the beneficiaries (Clements & Ademola, 121). Thomas is a person who has worked at a number of hospitals. The last years of his living, he worked for Penzance hospital. He has several houses in St Ives and Penzance. In his will, Thomas decided to place a trust for charity in the Cornwall County. The charity was to