What is the “trust” investment?
The concept a trust (direct trust) goes back to the British Middle Ages and is widely used all over the world. Essence of “trust” is in that one person, the founder of a trust transfers the assets to other person, the trust managing director so that that owned and managed it in interests of the third person – the beneficiary which are determined by the founder of a trust.
Thus the founder legally ceases to be the owner of assets can’t dispose of them as it transfers to their trust, but thus accurately determines, who as when, in what size and in what case will receive assets from a trust.
What reasons needed for trust creation?
If you want:
to Protect the capital from waste or unreasonable order successors. For this purpose you accurately describe, how, on what purposes, in what quantity, with what periodicity successors will receive assets. Payments also can be made depending on approach of any event (for example, a marriage etc.). For example, the son should receive annuity payments for current needs of times in a year at a rate of 100 000 $. At its marriage, payment will constitute 150 000 $.
to appoint successors. The trust can be considered as analog of the will, only more flexible – probably to specify some successors and to allocate between them shares or the sums.
to Pay expenses for education and training of successors.
to Protect the capital from attempt to take hold of it by the third parties (creditors, in case of divorce etc.). For example, it is possible to protect your capital from capture by raiders as officially property belongs to a trust. The information, who is the founder and beneficiaries, is confidential and doesn’t give in to announcement. In case of the divorce the given assets aren’t subject to section. In case of the announcement of the bankrupt the founder, creditors can’t raise a claim to these assets.
to Optimize the taxation. Successors are released from tax discharge on the inheritance.
to be engaged in charity. Sometimes, instead of at a time transferring money for charity it is more reasonable to stretch this process in time and managing a trust will solve, as it is better to spend money for the goal achievement, specified by the founder
At what sums it makes sense to create a trust?
The most rational is a creation of a trust of 2 000 000 USA dollars and above. You receive the flexible tool in capital management.
If the capital is less than 2 000 000 $, but you have certain reasons in which it is necessary to register accurately conditions of inheritance and the order assets trust creation also is possible. Other question is that creation of a direct trust in this case can be to waybills, but creation of the simplified trust within the limits of existing investment programs can be favorable.
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