The Social Security Trust Fund in the US tracks earnings and is split into two funds for retirees and the disabled. It buys US Treasuries and has a surplus, but concerns about its future have led to suggestions of raising taxes or making it a real savings fund. In the United States, the Social Security […]
A pension trust fund is a pool of money from an employer and employees used to finance future payments to employees. It is governed by national laws and used for company pensions. It allows for pooled investment and protects savings, but may not have enough money to pay guaranteed pensions. A pension trust fund is […]
An employee trust is a type of trust offered as part of a company’s benefits package, with the employer as the grantor and employees as beneficiaries. The most common types are ESOP and Pension Fund, and the trustee manages the trust. ESOP allows employees to receive shares without making contributions. An employee trust is a […]
A trust deed is issued by a trustee who manages the financial affairs of another person, often in the case of settling an inheritance or managing the resources of a loved one who cannot make decisions. The trustee must act in the best interest of the principal and must not personally benefit from the sale […]
A community trust fund is a non-profit organization that receives money from donors to improve a specific community. It can be structured as a traditional or non-profit trust, and wealthy donors may contribute to set up an endowment. The fund awards grants for various projects, such as education, health, and the environment, and can partner […]
A sale of trust deed is a non-court foreclosure where a servicer handles the sale of a property, occurring approximately four months after a notice of default. A deed of trust sale is similar, with a trustee holding legal title to the property and being able to sell it in the event of default. The […]
Mistrust between spouses is a growing industry, and communication is the only way to learn to trust. Regaining lost trust is difficult, and analyzing the source of distrust is necessary. Seeking assistance from a counselor or mediator is recommended, and forgiveness is necessary for rebuilding trust. It’s a long road, but both parties must prove […]
Trustees must keep accurate financial records when managing a trust or estate. The records must include the principal and income, any gains or losses, and all payments made. Once prepared, the statements are distributed to interested parties and can be used to distribute income and assets. A trustee is someone who is in a position […]
Trust accounts are managed by a trustee on behalf of the grantor, who may establish a revocable or irrevocable trust to protect funds or provide access to them in the event of death. Tax advantages may also be available, but consulting a lawyer and financial advisor is recommended. Trust accounts are financial accounts that are […]
Charitable Surplus Trusts allow donors to gift property and assets to a specific charity or non-profit entity while retaining and using those assets for as long as they are alive. Upon the donor’s death, the assets are transferred to the designated charity, providing tax benefits and reducing estate taxes. The trust cannot be revoked, but […]
In the US, mortgage lenders may require an escrow account to hold monthly contributions towards hazard insurance and property taxes. 14 states require lenders to pay interest on deposit accounts, but in the other 36 states borrowers can earn interest by closing their escrow accounts and paying taxes and insurance themselves. However, borrowers must determine […]
A trust protects assets from excessive taxation and court involvement, with the owner deciding how assets are divided. A living trust involves ongoing management of income and assets by a trustee. Legal experts recommend using estate planning attorneys and trustees, and trusts can be irrevocable or revocable. A passive trust supervisor ensures assets go to […]
Trusts are taxed on their income, with deductions available to reduce liability. Tax agencies have tables with rates for different income brackets. Trusts must file tax returns, and deductions are limited to expenses related to maintaining the trust. It is recommended to work with a professional to ensure proper management and avoid penalties. A trust […]
Escrow is a regulated process of transferring property and money using a neutral third party, commonly used in real estate transactions. Online escrow services have been established for remote transactions, but caution is advised due to fraudulent operators. Escrow can also be used for non-tangible assets such as intellectual property. Escrow is a way to […]
Defective trusts, such as intentionally defective donor trusts (IDGTs), can provide tax breaks and increase the wealth of descendants. These trusts must be carefully constructed to withstand tax scrutiny and can be detrimental if assets depreciate in value. They allow grantors to leave wealth to trustees while avoiding expensive estate taxes. To establish a defective […]
A children’s trust fund is a monetary account set up for a child, with the UK government establishing an official program in 2005. The program provided a voucher of £250 or £500 for low-income families, and family members could add up to £1,200 per year. The program was discontinued in 2011, but existing accounts remain […]
Escrow costs are often misunderstood by homebuyers. They are fees charged by the escrow holder who completes the transaction on behalf of the buyer and seller. Escrow accounts hold money on behalf of both parties until the conditions of sale are met. Escrow calculators can help buyers estimate fees. Escrow costs are part of closing […]
Regaining trust requires understanding why it was lost, apologizing sincerely, and proving through actions that you’ve changed. It takes time and patience, and may require multiple apologies. Once trust is regained, it’s important to take precautions to not repeat mistakes. Regaining trust is often a difficult thing that depends a lot on the circumstances, but […]
A deed of trust is a document used in some US states to transfer the title of a property to a third party as security for a loan. It identifies the property, borrower, lender, loan amount, and due dates, and can be administered by a title company. If the borrower defaults, the trustee can foreclose […]
A confidence drop is a group exercise where a person falls backwards and is caught by others to build mutual trust and team spirit. It can be dangerous, and experienced group leaders are recommended. Emotional trust is built before the physical fall, and a debriefing session follows. Some critics doubt its effectiveness. A confidence drop […]
