The Trust is a separate entity, here is how it works.

Usually the trust is a separate entitymanaged by a committee of trustees, and administrated by an attorney or a bank.  

(1) Seprate Entity:  Just to simplify for explaination,  when both you and your spouse die, all your asset can come under "Trust for Kids A and B", it will own your house, your car, your bank account etc.  You don't give the money directly to your kids or any other individual.  

(2) Caretaker:  Your brother as caretaker will take care of your kids A and B, and he has to report expenses for A and B in order to be reimbursed, such as clothes, food, medicals, schools, maybe your trust will also pay your brother monthly for labor, rent to live in his house etc.  
(3) Trustees:  The trustees could be your parents, siblings, your spouse' parents/siblings, it is usually odd number of people in order to have a voting majority (3, 5, 7 etc).   The trustee reviews the account to determine that your brother is doing his job, and also make major decitions on the account, such as sell the car, sell the house, change investment, giving your kids monthly allowance etc.) 

(4) The administrator (attorney or a bank) managed dailly operation (such as reembursement) and carry out trustee's decision (sell the house, buy a car, etc).  

(5) End of a Trust:  The trust can be designed to extinguish when your kids turn 18, or 25 or 30, and turn the money to the kids.  It does not have to be 18 since they are still not ready.  Or it can be run forever.  Rich people have this setup for generations, that's why rich kids are called "trust fund baby".

所有跟帖： 

• 回複：The Trust is a separate entity, here is how it works. -apt- ♂ (41 bytes) () 02/03/2014 postreply 16:15:26

• 回複：The Trust is a separate entity, here is how it works. -林依- ♀ (29 bytes) () 02/03/2014 postreply 20:02:35

• In reality... -lexm5- ♀ (615 bytes) () 02/04/2014 postreply 06:28:02

• 回複：In reality... -林依- ♀ (168 bytes) () 02/04/2014 postreply 07:18:56