Lesson 17 – What Is a Trust, and How It Operates
A trust can be classified as a private living trust which is treated as an unincorporated entity. This kind of trust has the capability to own all your accounts, assets, business ventures, land, real estate, insurance policies, and even your wills, the same way an LLC or corporation operates a trust. Conversely, one thing that makes it different is that it works upon the privacy settings of a common law. Hence, it cannot be regulated even by public statutes of artificial laws. Trust, on the other hand, if set-up properly, is formed through declaration of faith and not by a government body versus an LLC or corporations alongside the articles of incorporation of the legal entities’ other formations.
John Doe (the agent) has the option to go to his bank and set-up a non-bearing interest account for his business trust through the trust department of the said bank. He can add all of his bills, business accounts, land, real estate investments, and even insurance policies to the trust. Now, the business trust becomes own nothing, control everything.