What is an implied trust?

An implied trust is a financial arrangement that has the characteristics of a trust without the formalities establishing one. An implied trust may not be expressly defined as a trust in a will or other legal document, rather a court determines that a trust agreement exists by looking at the nature of the arrangement the parties have made.

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What is a secret trust?

A secret trust is a trust that is not included in the terms of a will. There are two types of secret trust’fully secret trusts, which are not mentioned in the will, and semi-secret or half-secret trusts, which are mentioned in the will. Semi-secret trusts usually do not name the trust’s terms or the trust’s beneficiary.

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What is a bare trust?

A bare trust is generally known as a trust in which the person receiving property, the beneficiary, is entitled to the income and the capital of the trust. The income is the amount that the property earns while it is held in trust for the beneficiary. The capital is the amount of property in the trust.

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What is a life insurance trust?

An irrevocable life insurance trust, or ILIT, is a trust set up by a couple with a third party trustee and is meant for the purchase and distribution of life insurance. The ILIT can be used as a shelter for both term and whole life insurance policies. A life insurance trust can be useful for both old and young couples as a means of removing life insurance from their estate.

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What is a standby trust?

A standby trust is created during your lifetime, and at the time of your death, the property in the standby trust is transferred according to the directions in your will. One of the reasons it is called a’standby trust’ is that the owner creates an investment plan and the executor or manager of the trust carries out this plan, but only at the direction of the creator of the standby trust.

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What is a simple trust?

Trusts are generally created as a way to manage property, such as cash or real estate, and transfer it to someone else at a certain point in time. A simple trust, also known as a bare trust, is one to which the trustee does not have to do anything other than ensure that the trust property is given to the named beneficiary within the time frame specified by the trust.

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