What is the purpose of a trust indenture?
A trust indenture is a legal document that outlines the terms and conditions of a trust which can be used for estate planning purposes. Trusts are popular in California due to the generous exemptions provided by the law which can help to reduce inheritance taxes. The purpose of a trust indenture is to spell out the details of the trust and its resources. It identifies who will be the beneficiaries of the trust and who will be responsible for its management. The trust indenture also establishes the rules and conditions required for the trust to remain valid. It will set out the terms around investment, distributions, and reinvestment of assets within the trust. It also provides protection to the trust to ensure that it will remain viable over the long term. Finally, the trust indenture will contain provisions that outline how disputes between beneficiaries and trustees, or among trustees and other parties, will be resolved. These provisions will determine how any disputes will be handled so that all parties are protected.
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