A discretionary trust is a type of trust agreement that grants the trustee the authority to administer the trust's assets and income based on their own judgment, as long as they act with prudence and common sense.
An Inter Vivos Trust, also known as a living trust, is a legal arrangement established during the lifetime of the grantor, typically for the benefit of another person, such as a child. This differs from a Testamentary Trust, which becomes effective upon the death of the trust creator.
A nondiscretionary trust, also known as a fixed investment trust, is an investment trust that may only invest in specific securities pre-determined by its organizing documents. The percentage of total assets that may be invested in a specific security or type of securities is usually predetermined.
A Single Property Ownership Trust (SPOT) is a legal fiduciary structure where a single real estate property is held within a trust, managed on behalf of the beneficiaries. This arrangement aims to maximize property value, simplify management, and offer estate planning benefits.
