An important point of revocable trust is the fact that it is revocable – meaning that the trustmaker can, at any time, while the trustmaker is alive and competent, change the terms of the trust agreement or (by a change of trust) revoke or revoke completely (by a change of confidence). This is a legal contract between the trustmaker and the agent, which can be amended at any time and requires the administrator to oversee the management of assets transferred by the Trustmaker to the trustmaker for the benefit of the beneficiaries of the trust. While the trustmaker is still alive, they act as their own agent. After death, a new attorney takes over. Some people simply use trusts for privacy. The terms of a will may be public in some jurisdictions. The same terms of a will may apply through a trust, and people who do not want their will to be publicly posted choose trusts instead. Blind Trust: This trust provides that the trustees of the trust manage the assets of the trust without the knowledge of the beneficiaries. This could be useful if the beneficiary is to avoid conflicts of interest. Separate Share Trust: With this position of trust, a parent can establish a position of trust with different functions for each beneficiary (i.e.
secondary beneficiaries). Finally, a person can create a position of trust to qualify for Medicaid while preserving at least part of his or her fortune. Special Needs Trust: This trust is intended for a dependant who benefits from state benefits such as social security disability benefits. The establishment of the trust allows the disabled person to collect income without affecting or expiring government payments. Trust Agreement or Trust Deed is an agreement in which a person transfers assets to another person (trustee). Under the provisions of this Agreement, it is possible to transfer money, securities, real estate, personal and intellectual property and other property rights. Trusts can also be used for tax planning. In some cases, the tax consequences of using trusts are less important than those of other alternatives. This is why the use of trusts has become an element of tax planning for individuals and businesses. A trust is a legal entity employed for the property, so the assets are generally safer than they would be for a family member.