What Is Fiduciary Management?

Management trust ^{[1] is the} opposite of "guarantee trust". A trust established for the purpose of managing and using property. Including the narrow property management trust for the purpose of pure property management and the disposal trust established for the purpose of the use and disposal of property. The scope of application of management trusts is extremely wide, both for the management of the property of minors and banned property and the management and distribution of estates, as well as for trust investments. ^[1]

Management trust

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Management trust ^[1]

According to the different management methods of trust property specified for the purpose of trust, trusts can be divided into management trusts and

Management trusts and disposition trusts mainly take advantage of the trust characteristics of "separation of responsibility and benefit". In many cases, the establishment of a trust is based on management considerations. For example, if someone has $ 300,000 and his child is studying abroad, it is impossible for parents to manage their children s daily life and expenses overseas, but they are not comfortable with their children's self-management of money. In this case, the author believes that it is entirely possible to set up a management trust and stipulate that the trustee will manage this trust property for its children.

This can ensure the smooth progress of children's life and schooling, and will not cause the child to spoil the property due to not managing the property or suddenly having so much money at his disposal. Among high school graduates, there is a great enthusiasm for studying abroad. The author believes that proper use of the management trust can relieve parents of many concerns, and is objectively beneficial to the growth of children. ^[1]