Trust funds are what?
Trust funds are a trustproperty, a peculiar structure of relations, in which the property, which is the property of the founder of the organization, is transferred to the disposal of the trustee. In this case, the beneficiary gets the income.
Trust funds are property values,which are transferred from one person to another. To implement the transfer of ownership, a specialized agreement is signed - a trust agreement. The parties to the contract are the founder of the fund, the manager and one or several beneficiaries. The trust fund in Russia, like in any other country, is considered to be a full-fledged legal entity.
Distribution of roles and functions: founder and manager
The structure of trust funds provides forpresence of a blocked account, which is subordinated to the manager. There are certain commercial conditions for partnership between the parties. The founder has the full right to choose the manager. It can be a notary, a lawyer, a bank manager, and any other person with an appropriate level of qualifications. In accordance with generally accepted standards, the manager takes responsibility for managing the investors' capital. The manager does not act as the owner of the property, but it is fully responsible for any damage or loss, various omissions related to the property of investors for the management period.
If the founder of the fund identifies a desire to do sorisky investments that do not correspond to the structure of risk distribution, he has every right to do so. The only "but" is that in this situation, the responsibility with the manager is completely removed. These freedoms are governed by a trust agreement to trifles. For the blocked account, the following peculiarity is inherent: money can be paid to it in any accessible way, but when the conditions are activated, the material resource must be paid only for the realization of a certain goal.
The target audience
There is a specialized trust fund for children,but there are trusts for large companies and their leaders, associations for individuals who have some savings. In this situation, the fund can act as a reliable tool to ensure the safety of property with low taxation and decent profit. Communities are targeted at owners of all kinds of real estate, on owners of securities and offshore organizations. It is worth mentioning that this category of "institutions" provides a comprehensive anonymity to the beneficiaries. The funds that are transferred to management in the trust are not available to creditors and are not subject to taxation.
The objectives of creating trusts
A trust fund in the United States, Ukraine, Russia can be created for different purposes:
- As a means of ensuring the security of assets, as the property trusted by the trust can not be appealed to not only creditors, but also other third parties.
- Trust funds are an alternative to the standardwill. This is due to the possibility of several beneficiaries at the same time, as well as trust managers. Between the beneficiaries in the future and will be distributed property, but only after the death of the founder.
- Trusts can be of national importance. For example, NATO trust funds were created solely to help Ukraine.
Disadvantages of the Institute
Despite a fairly broad listadvantages of such funds, they also have certain drawbacks. We can say about the partial loss of control over property, which is trusted by the manager. But there is also the second side of the coin, completely overlapping this fact. In accordance with the agreement, the founder can not terminate the agreement unilaterally. This fact significantly increases the level of property protection against encroachments by creditors. In the domestic legislation there is no specialized law to which the activities of such organizations would be subordinated. The fund can be called property with undivided capital. This category of legal entities has a unique tax status, according to which any income is not taxed.
The fineness of the existence of the fund
Trust funds are associations related tocategory of societies with indivisible capital. Separate property with the status of a legal entity is used for different purposes, beginning with the accumulation of capital and ending with the overlap of expenditures of different ranks (education, treatment, training, etc.). The purpose of the fund's existence is realized by a specialized body, which is called the Council of the Fund. Legal entities and individuals, non-residents, members of one or several families, the founders themselves can act as beneficiaries. The Fund has the characteristics of an ordinary company and has some unusual structural solutions. The structure of education ensures the control of the founder over the assets without violating the confidentiality policy.
Structure of trusts: grants, beneficiaries, trusts
Trust Fund in Ukraine, as in any othercountry, provides for the presence of a grantor, or donor. This person who establishes the fund itself and donates his property to it. This can be cash, shares, bonds, any securities. It is the grantor that sets the specifics of the fund's work. Be sure to have a recipient - the person for whom it was created. In the long term, the work of the fund will be conducted in such a format, in which the beneficiary will receive a certain benefit from the work of the organization, established by the founder. In the role of manager (trust) can act as one person, and the whole company. There are several trusted advisers. The manager works for a fixed salary. In some situations, trusts are hired not to waste, but to an authorized investor with high qualifications who is able to effectively manage assets.
Probable problems and their solution
The creation of the trust is very popular todayA direction that allows you to save money and cut costs by avoiding taxes. Almost every state has a legal framework (with the exception of Russia), which regulates the activities of this category of organizations. In some states, eternal trust funds are widely practiced, while in others they are strictly prohibited. The government of some countries is concerned that people can receive large fortunes that they have not earned. Before opening the fund, experts recommend consulting a specialist.