How does a trust work to protect assets for future generations?
Trusts are legal arrangements that are used to protect assets for future generations. In West Virginia, a trust is established by a grantor, or person who sets up the trust. The grantor will create the trust document, known as a trust deed, which stipulates how the trust should be managed and the rules and regulations that govern it. The grantor will also appoint trustees, which are individuals who will manage and oversee the trust. The trustees are responsible for ensuring that the trust is managed and administered according to the terms of the trust deed. The trustees also have the authority to manage and invest the trust assets, and to distribute the assets according to the instructions of the grantor. The trust assets are held for the benefit of beneficiaries, which are individuals who are entitled to the income or assets from the trust. The grantor can stipulate in the trust deed exactly who is to receive the income or assets from the trust, as well as how much they will receive. A trust can protect assets from creditors, taxes, or other financial pressures that may otherwise diminish the asset value. It can also protect assets from being distributed or disposed of in ways that the grantor would not have intended. A trust can be an effective tool for protecting assets for future generations.
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