TRUST BASICS        info@truetrust.com

 All trusts have certain common characteristics:
 
 * CREATOR - The person who originates the trust is called the
 creator.  Other names for the creator could include grantor, the
 maker, the settlor, the trustor, and other names.  Typically, the
 creator is the person with a goal in mind, which he or she hopes to
 achieve by creating a trust.  Usually, the creator contributes
 assets to the trust during the creation, or shortly thereafter,
 thereby becoming the "grantor".
 
 * CONTROL - The person in control of the trust is called the
 trustee.  He is responsible for running the trust, making all
 decisions, and managing the assets.  Often, he has exactly the same
 powers as if he were acting as an individual.  He may have some
 limitations to his power described in the trust.  A trustee can
 decline to accept the original appointment.  However, after
 acceptance, a trustee can't resign unless permitted by the trust
 documents or by a court ruling.  It's fairly common to have
 co-beneficiaries, co-trustees, successor beneficiaries and
 successor trustees.  Co-trustees normally must agree on all
 decisions, therefore allowing either to have veto power.  This can
 create conflicts, unhappiness, and other problems.  We recommend
 that singular individuals have control at any one time, if
 possible.  Otherwise, try to provide for a majority decision by
 appointing unequal numbers of trustees or appoint a tie-breaker to
 resolve conflicts.
 
 * BENEFICIARY - The equity, value, or distributions from the trust
 will benefit the beneficiary.  There can be different types of
 beneficiaries.  For instance, income could go to one person for any
 period of time; and principal could be distributed differently.
 Beneficiaries could be limited to the benefit for only their life. 
 That would mean that their families (heirs) would not have any
 rights to any inherited benefits.  You could name some of them as
 remainder beneficiaries anyway.  That's the good news.  Your
 choice, your way.  Many trusts have "remaindermen" or remainder
 beneficiaries, who'll receive the trust assets after the trust
 terminates, or after some of the other beneficiaries are gone.  The
 income beneficiaries and the remainder beneficiaries may be, but
 don't have to be the same.
 
 In some trusts, the same individual can be creator, trustee, and
 beneficiary.  Thus, he or she has complete control and benefit of
 the assets, even while the assets are owned by the trust.  Even if
 the creator can't fill all the roles, the trustee and the
 beneficiary frequently are one and the same.  If it is of primary
 intent to use the trust as a protector of assets; it is best if all
 positions are NOT filled by the same person.
 
 BASIC INGREDIENTS IN A TRUST:
 * Trusts, entities created to own property, can be used by people
 of moderate means as well as by the rich.
 
 * When creating a trust, you need to carefully spell out the
 identities of the parties, their roles and the assets you mean to
 transfer to the trust.
 
 * Control can be retained, especially when first getting
 comfortable with the concept and use of trusts.
 
 * Although you could give up control of assets, to gain tax
 advantages and asset protection, you still can continue to exert
 considerable influence over trust property.
 
 * Trusts generally have one or more beneficiaries and one or more
 trustees.  Someone can function as both trustee and beneficiary.
 
 * The trustee, as asset manager, is the controller, so considerable
 care should be taken in selecting trustees, co-trustees, and
 successor trustees.
 
 * Trustees have a fiduciary responsibility to invest the trust
 assets prudently and CANNOT legally convert assets to others not
 named as beneficiaries.
 
 * Trusts set up while you are alive are living trusts, which may be
 revocable or irrevocable.
 
 * Testamentary trusts, which take effect at your death, are
 irrevocable.
 
 * Irrevocable trusts are more powerful tax reduction and
 asset protection tools than revocable trusts.
 
 * When a trust is established, specific language should be should
 be included on how and when the trust can be terminated.
 
 * When drawing up a trust, get professional advice from many
 sources, even if that means you end up spending substantial
 amounts.
 
 MULTIPLE TRUSTS
 
 Don't think you have to stop at one trust.  Depending on your
 individual situation, you may be better off using two or more. 
 Just be sure that you're working with a knowledgeable, experienced
 and reputable attorney--and that you fully understand all the
 implications of your actions.

              info@truetrust.com