Over time, there has been an increase in the reliance on trust agreements for the following reasons;
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- Reduced estate taxes
- Proper allocation of assets to beneficiaries
- Elimination of court fees
- Protection of assets from creditors
- Protection of assets from other family members thus avoiding intra family conflict
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Added to the above, there are about other types of trust
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- Revocable trust
- Charitable trust
- Blind Trust
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The types of trust include the following;
1. REVOCABLE TRUST
This is made during the lifetime of the trustor and the roles of trustor, trustee and beneficiary are vested in the same person. The assets are however transferred upon the death of the original trustor.
2. CHARITABLE TRUST
This a trust that has a charitable organization as its beneficiary and the trust is built up during the trustor’s life and transferred during his death, avoiding or reducing estate taxes or gift taxes.
3. BLIND TRUST
This trust is operated by the trustee without the knowledge of the beneficiaries. This is usually to avoid conflict between the former and the latter.