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to get a basic concept between the difference of these two, there are basically three basic individuals involved in a trust. The trustor, the Trustee, and the beneficiary. The easiest way to understand this is by illustration.
Trustor-------------------->Trustee----------------------->Beneficiary
gives $ or property manages $ or property receives $ or use of property
As an example, Anne (trustor or donor) wants to give $100,000 to her daughter Marie (the beneficiary), but does not want her to have access all of the money at once. Therefore, she gives the money to Hillary (the trustee) and tells her to only pay her daughter Marie 10,000 per year, over the next ten years.
Now there would of course be other variables within this example such as management fees the trustor would charge, as well as accrued interest since the money would be held in a trust fund, but I'm trying to give a simple answer to a simple question.
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What is the difference between a trustee and an agent on a trust?
A trustee is a person or entity appointed to manage and administer a trust on behalf of the beneficiaries, while an agent is someone authorized to act on behalf of a trustee in specific circumstances. Trustees have a fiduciary duty to act in the best interests of the beneficiaries, while agents act on behalf of the trustee and must follow the trustee's instructions.
Explain in detail the difference between trust and bailment?
Trust involves giving control or ownership of property to another person (the trustee) who is expected to manage it for the benefit of another (the beneficiary), while bailment involves giving possession of property to another person (the bailee) for a specific purpose, with the expectation that the property will be returned in the same condition. Trusts are typically long-term arrangements with legal implications, while bailments are usually for a specific, temporary purpose. Trusts involve a fiduciary duty, while bailments involve a duty of care.
What is difference between immovable and movable property?
Immovable property refers to land and things permanently attached to the land, such as buildings. Movable property, on the other hand, includes items that can be easily moved or transferred from one place to another, like furniture or vehicles.
Can living trust be created for a minor and can they be the trustee?
Yes, a living trust can be created for a minor, with a responsible adult appointed as the trustee to manage the assets on behalf of the minor until they reach a certain age specified in the trust. The minor cannot act as the trustee due to their legal status as a minor.
Is there a difference between a trust and a will?
Yes, there is a difference between a trust and a will. A trust is a legal arrangement where a trustee holds assets on behalf of beneficiaries, while a will is a document that outlines how a person's assets should be distributed after their death. Trusts can be used to manage assets both during someone's lifetime and after their death, providing more control and privacy compared to a will.
