How can a man ensure that the money that he puts in the Trust is porperly utilized?

Question

Suppose that a man makes a Trust before his death and leaves behind 40% of his assets for the welfare of destitute children, and he does not have any descendant to look after the affairs of the Trust, then what should he do to esure that his money goes where it ought to.

Answer 1

Public and Private banks can be entitled with the duty. They will do it for a nominal charge. And they will act according to the law. They are usually very good at it as any mistake can spoil the reputation of the bank.

Answer 2

The trustee is responsible for managing the trust -- that's the trustee's job.

In the case of a private trust, say for his own descendants, the beneficiaries can sue if the trustee is not properly carrying out his duties.

In the case of a charitable trust, the state oversees the activities and ensures that the trustee is doing their job and not comitting fraud or waste.

Answer 3

Never. All trusts are managed badly and many of the trustees swindle money. I lost more than 3 lakh rupees in some of the trusts and Nidhi companies.

Answer 4

To answer the question it is important to understand the concept of the trust. At the time of the creation of the trust, the settlor (a person who transfers funds into the trust) transfers legal interest in the funds to the trustee (a person who legally owns the property) for the use of the beneficiary ( (a) person(s) to whom the trustee transfers the benefit of the trust). The trust is an equitable instrument that has two specific characteristic:

1. trustee has fiduciary duty, which means that trustee has to act in the best interest of the beneficiaries. Breach of fiduciary duty is a serious misdemeanor and is strictly enforced by the courts (usually on an application from the beneficiaries)

2. trustee has to provide the beneficiary with statements of accounts, has a duty to invest the funds to make profit to the beneficiary, has to exercise his best skills to preserve the funds

The protection of the beneficiary is usually embedded into the trust instrument and includes:

1. appointment of three or more trust-worthy trustee (instead of one) to balance control of the fund. It is important to establish a voting mechanism in case there is a disagreement between trustees

2. appointment of auditor in one year period after the death to check the accounting of the trustee.

3. indicate existence of the trust in as many documents as possible (i.e. will, power of attorney,etc.)

In your particular situation, in addition to appointing several trust-worthy trustees, you should give a lawyer power to control the trust and to include such powers in the trust. Alternatively, you may give such power to the Office of Children Lawyers or to the Office of Public Trustee who may initiate application to the court if there is reasonable suspicion of fraud and/or breach of fiduciary duty.

Well, in conclusion, the law of trust is quite sophisticated and it is important to hire an experienced lawyer to draft a well-considered trust agreement that would cover most of potential situations.

Answer 5

In the final years of his life,he should ve chosen a reliable person..and give all the responsiblity to him..
or the best idea would be to divide his assets and give to ashrams across the country..

Answer 6

If he created a Trust, then he would have named a Trustee to administer it.

Answer 7

Think it is a donation to the trust

Answer 8

Make a financial institution the trustee of your trust.
They are legally bound.

Answer 9

make a clear will document and specify what you indent to do and how the trust has to be formed and functioned.

Answer 10

he can hand over it 2 da person whom he trusts more