Essay - Combining Life Insure with Trusts to Provide Better Family Financial...

Combining Life Insure with Trusts to provide better family financial security

Summery: Life Insurance and Trusts are two financial arrangements which provide security ***** the family and living relatives of the owner ***** property or trust. In this article, we look at insurance, *****s and how these can be used for ***** financial security and risk management. The article contains six references.

Introduction

***** ***** management is an important concept in the field of management. A person with an established business, occupation or source ***** income ***** suddenly take ill, resulting in the loss of that ***** which depended on him to generate. This can be a serious ***** for him and others who depend ***** the *****come.

There are ***** financial instruments ***** are available which can continue to provide ***** him or his dependents ***** compensation ***** income based on his previous investments. For monetary investments which had been paid on regular intervals, there is the instrument of life insurance. For ***** owned, there is the instrument ***** trusteeship. [***** & trustees 2003].

Thus both ***** ***** financial fund ***** the property can be managed in the event of the illness or death of the *****. Liquidity is required at the time ***** death to cover ***** final payments and other expenses. In th***** article, different aspects of trusts as *****ll ***** life insurance and ********** combinations are reviewed.

What is a trust?

***** trust is establ*****hed when assets are transferred from one person to another ***** the instructions that ***** assets ***** to benefit a third p*****rty. The trust has ***** its concepts in the English Common Law and o*****r countries have had their own ***** of trust enshrined in their legal systems.

A trust is the most flexible f*****m of ***** instrument and when an individual has placed an asset or property into ***** *****n they should cease to have any further interest in the **********. The benefit passes on to the beneficiaries or is held on ********** behalf.

***** to ensure that ones liquid sav*****gs ***** been well invested, the ***** usually looks at the ***** ***** with considerable tax break and high growth and f***** the property one can consider trust since if ***** property was to be liquidated then ***** could be taxes, diminished property value ***** other considerations to think about which may yield lower returns. [Trusts & trustees 2003].

Elements of trusts

***** are many ***** kinds of trusts [Trusts & trustees 2003].

Trustor trustor is a person who sets up the trust *****nd places the original ***** for the *****. In ***** situations, this is the person who may be ill, dead or away.

Trustee trustee is the financial institution or institution on who trust can ***** placed. There are lots of trust companies and *****s hold property in trust ***** ***** beneficiary after taking possession ***** them from the trustor. The word fiduciary ***** be ***** to describe the duties of a trustee ***** a beneficiary. The trustee charges