Trust law is wide area of law that is complicated far above any explanation. So not to drag this any longer, I will educate you about trust law throughout types of trust that exist within.
Irrevocable trust is a trust that can’t be changed or cancelled until all the terms from it are fulfilled. But, if an event causes damages to the future of that trust then court may decide to change the terms in the mentioned trust.
Offshore trust is once again another way to avoid tax, by having assets as a trust in one of the countries that are considered tax haven. Due to this type of trust coming to existence, many people started implementing the term of onshore trust, which is basically any normal trust that happens within the country of the settlor.
Personal injury trust does what it says. Money is held in the trust to be used when an injury happens. When it does, money is pulled from that trust to cover all medical expenses.
Trusts can be divided in private and public trusts. Private trusts have individuals as benefactors, while public trusts have some charitable goals in mind. Charitable trusts have some special treatment due to their aim, and because of that not every trust can achieve the title of public/charitable trust. Only those trusts that publicly announce their goal, the goal of a trust, and that goal is to help other people can become a public trust ( goals can be found in the trust law ).
When you speak about purpose trusts, you are speaking about charitable trusts you can find out more . But there have been cases of non-charitable purpose trusts back in the 18th century. Many countries banned this kind of trusts, because they fall under special treatment by the law and are not aimed to help general population.
If anyone thought that law is simple he would feel stupid when he found out how complicated it is. Even trust law, a small branch of civil law, has large number of trusts types. I may not be able to list them all here, but I will try to explain few of those that I do list. Constructive trust is a type of trust that is not created through the agreement, but through the word of the law. Constructive trust is a form of equitable remedy. It is issued due to a form of wrongdoing, in which a party gained rights to the property, but the law forbids him or her to benefit from that property.
Constructive trust may come out as a transfer of property to the legal owner, where wrongdoer has to transfer whole trust to the party that has rights over it. But, that is not the case in the most of proceedings because the trustee of constructive trust doesn’t have to be a wrongdoer, it can be some organization or even a bank. Because of this dispersion of trust holders two sub-types of constructive trust may be recognized, the remedial constructive trust and institutional constructive trust.
Discretionary trust is a trust type that include criterion that benefactors have to satisfy before they gain the rights over the trust. Visit site to know more if you are ready to decide. Settlor may decide what criteria he wants for certain benefactors. When those benefactors succeed and meet the criteria then they are allowed to enforce the trust.
Directed trust contains a party that is nominated as directed trustee. This party is nominated by other participants in the trust, and the object of the directed trustee is to implement the execution of the trust. The role of the directed trustee is big, because among other things he has to offer resolutions in disputes among other participants, provide tax accounting and fiduciaries, he also has to follow the investment instructions which were provided by settlor or decided among the other participants and so on.
These three types of trust in Trust law are just the example, an insight into the complexity of Trust law.