Why Do you Need Equity and Trust Agreements

When you assign a property/asset under a trust for some beneficiary, you must appoint a trustee to administer it.

Generally, trust funds give discretional powers to the trustee to perform it as he sees fit. As a result, in a discretional trust, the trustee is not obligated to issue the funds either to the settlor or the beneficiary.

Unlike companies, trusts do not have to register themselves. When it comes to enforceability, the trust agreement is usually the only evidence on which laws are based because a trust deed outlines the rules that govern a trust fund.

To prevent misuse of powers by the trustee, and to retain command of the trust property, you should issue a statement of trust. Such a declaration of trust not only gives the settlor the rights over the property, but it also ensures that the nominee remains the beneficiary.


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