What is a Trust? by Tony Melvin & Ed Chan

 

One of tools of investing or business is the use of trust structures. The main benefit of a trust structure is that it provides flexibility. Income can be distributed to the lower income earner, assets can be protected, and wealth can be passed onto the generation with minimal fuss and little or no tax.

 

Trusts however come in all shapes and sizes and there is no “one-size-fits-all”. The type of trust you use depends on many factors, such as; type of asset or business, financing, income type, marriage status, susceptibility to be sued – just to name a few. So be weary of anyone saying – such-and-such a trust will suit all situations because they are lying.

 

While it is not possible to cover every type of trust in this article we will explain what a trust is. This basic understanding is often missing and therefore trusts and their usage become unnecessarily ‘complex’.

 

A trust is basically an agreement or promise. A person or company agrees to hold assets for the benefit of another. The one who holds the assets is called the trustee; those who benefit are called beneficiaries. (See figure 1)

The trustee has legal control, which is legal title only. (A person with legal control can buy and sell an asset but will never own or enjoy the benefits of ownership, such as income or usage). It’s the trustee’s name that appears on all legal documents, bank accounts, etc.

 

The beneficiaries are not mentioned on such documents and have beneficial ownership (allowing a person to enjoy the benefits of ownership, including; usage, income, profits etc – even though legal title is in another name.) Therefore the beneficiaries are entitled to the assets and profits of the trust.

 

The basic function of a trust is to separate control and ownership. The result is that asset protection is possible and profits distributed in the most tax effect way.

 

The part you need to get your head around is that, when you establish a trust of your own, you have both legal control and beneficial ownership. Most people don’t separate the hats, they think they are one and the same but that are not.

 

For example, asset protection occurs because even though legal title is in the name of Joe Bloggs, Joe is trustee for a trust and therefore doesn’t own the asset – the assets are held in trust for the beneficial owners – hence nothing can be taken from Joe because he doesn’t own it.

 

Ownership plays a key factor in not just asset protection but with in the tax system too. This is why a Player will endeavour to own nothing and control everything!

 

There are many benefits to structures such as companies and trusts that a Player can use to his or her advantage.

 

Those that are currently dealing with debt issues are surely looking for a solution to their problems.

However, they may be confused regarding the many different solutions that are offered out there. For example, some organizations promote debt management while others will promote debt settlement.

Hector Milla Editor of the “Best Debt Consolidation Services” website — http://www.ReputableDebtConsolidationCompanies.com — pointed out;

“…This leads to many confusing the too and assuming that they are both the same thing. This is not the case as there are significant differences between the two…”

As the name implies, debt management deals with helping an individual gain control of his personal financial situation. In many ways, a financial management company is an advice service. The management counselor will look over the person’s income, then look at the debts, and help devise a payment strategy. Also, the management company may help decide upon means of cutting unnecessary expenses from a budget. In some instances, the management firm may pay the client’s bills for him/her and the client will then pay the management firm the money owed. Of course, the client will pay a fee to the service but this is expected.

Debt consolidation companies are generally not involved in any advice or counseling service. Essentially, they will negotiate a debt down with the various lenders. The lenders will agree to this because payment up front on a portion of the debt will be a far better option than what they might receive in a bankruptcy filing. As such, the settlement offer from a debt consolidation company becomes attractive.

“…Additionally, the ability of a debt consolidation company to negotiate down debt is a huge asset to someone in debt. Most people that are heavily in debt want to get out of the problem they are in as soon as possible. With a debt consolidation company, this is possible. With a debt management firm, the ability to end the current debt situation is not possible. Instead, the goal is to discover a long term strategy to help deal with the problem. For many, this is not enough help as the debt remains. Additionally, the fees of the debt management firm are further problematic. That is why debt consolidation remains a better option for so many people…” added H. Milla.

Further information about trusted and reputable companies for debt consolidation by visiting; http://www.ReputableDebtConsolidationCompanies.com

 

Education has been very important in the lives of many people. However, it is not that easy to go to college and get a degree. What if you don’t have the financial resources to earn a college degree? Is there still a way for you to fulfill your dreams?

An Astrive student loan is a private student loan. It is the best solution for you to be able to enter college even with a low amount of financial help for schooling. You can get an Astrive student loan if you are seventeen years of age and a certified US citizen or have lived at least for two years in the US. Moreover, you must have a well established credit history of twenty one months at least. Also it is important that you must have worked for a minimum of two years at the same employer. 

A co-signer is important in getting approval for particular Astrive student loans. The co-signer will be the one to help you acquire a better credit line if ever you have a bad history credit. With a co-signer you can be assured of a much lower fees as well as rates. Furthermore, with a good co-signer you can receive the loan in the fastest and quickest way possible. Your status as well as the name of the school you are attending is important to qualify for an Astrive student loan.

Annually, you can have the chance to borrow as much as $40,000 which has a $130,000 lifetime limit. However you can also borrow for a minimum amount of $1,500. As for payment, you have three choices on how you want to pay the money that you have borrowed. The first option is to pay the loan right away to avoid high interest payments. With this option, you can be assured that in the long run you will be able to save more money. The second option is to pay interests for payments only. But to be able to have this option, you must be a half time student at least. And the last option is to fully pay the loan after graduation. But, just like the second option, you must also be a half time student at least to be qualified for this type of repayment schedule. 

You are allotted twenty years to repay Astrive student loans. However, along with this are the monthly minimum payment of $25.00 and an inconsistent rate of interest. Early payments are encouraged to avoid penalties. 

Therefore, with Astrive student loans, financial resources are not anymore a problem to earn a good college degree. So, there is no reason for you not to go to school and achieve your dreams for your future.