Direct Trust (Noun)
Meaning
A trust created by the free and deliberate act of the parties involved (usually on the basis of written documentation).
Classification
Nouns denoting possession and transfer of possession.
Examples
- A direct trust is usually established through a written trust agreement, which outlines the terms and responsibilities of the agreement.
- The couple opted to create a direct trust in their wills to ensure their children's financial security after they pass away.
- The trust can be structured as a direct trust or an indirect trust, depending on the specific requirements of the parties involved.
- Direct trusts often specify the beneficiaries and the distribution of assets in the event of a specific occurrence.
- Establishing a direct trust by means of written documentation ensures that the intentions and instructions of the grantor are followed after death.