What is a firm trust?

There are two types of solid trusts. The term fixed trust is most often used in discussion on legal measures to manage the person's asset. The second type is the trust of a fixed investment, a kind of investment organization. It is a financial organization that manages and invests money from various investors. Trust with a fixed investment is not discretion, which means that trust is limited to buying certain securities. In firm trust, the creator of trust, he called the provider, sets or repaired the recipient of trust, as well as the amount of money or benefits to obtain. A person who manages trust, called the administrator, has no discretion in trust. In principle, this means that the recipients can not change or the benefits to accept.

In solid trust, the provider can choose anyone as his recipient, or he can choose more than one recipient. For example, a trust provider can repair his son and daughter as a recipient withtrust, or can include their husband and children as a recipient. The Provider can also provide an advantage or percentage for each of its recipients. For example, he can grant 60% of the benefits of trust for his husband and 40% of the benefits of his daughter.

Often, firm trust is compared with discretion confidence, for which the provider has not set a fixed recipient or the amount of trust. Instead, he / she may name the recipient or specify the grade or level of recipients. However, the discretional trust administrator has the power to decide which beneficiaries will benefit from trust. He also has the right to decide on the degree of benefits they will enjoy. Gdiskreční trusty are generally more common than solid trusts.

Trust fixed investment, also called unit investment trust, is a company that buys a solid portfolio of securities. The company sells Trust securities, but the securities portfolio is not managed. People who invest in trust call shareholders, regularly receive dividends, interest and capital gains. Investments are considered low, but also generally offer low yields. Investments are limited to the investments that were listed at a time when trust was organized.