The Guernsey Foundation can be used as an alternative to the PTC and purpose trust arrangements that have traditionally been used to allow Settlors
to retain control over assets and wealth.
CRTs are the best alternative when settlors
would like to provide a current benefit to themselves, or their descendants, for life or a term of years, with the remainder passing to a charity of their choice.
Another 20 states place significant limits on the fees that debt settlors
Therefore, a simple statement in the trust agreement that the settlors
intend to create a TBE interest for all property transferred to the trust provides the required intent to create a TBE interest in the trust property.
In many cases this can make these types of trusts unattractive as settlors
often like more control over when the beneficiaries receive the trust assets and to retain the ability to alter who benefits from it.
However, the rising popularity of both commercial and noncommercial trusts has led to an explosion in hostile trust litigation, leading settlors
and trustees to search for new and less expensive ways to resolve trust-related disputes.
Where the homestead is held in the name or names of a trustee or trustees of a revocable inter vivos trust or of revocable inter vivos trusts made by the settlors
of such trust or trusts who are husband and wife, and the husband and wife are the primary beneficiaries of one or both of the trusts so created, and the deed or deeds conveying title to the homestead to the trustee or trustees of the trust or trusts specifically state that the interests of the husband and wife to the homestead property are to be held as tenants by the entirety, the estate created shall be deemed to be a tenancy by the entirety.
The cost of trust administration is obviously of concern to some potential Settlors
, but there is no reason why trustees can not ensure that they get good value for money for the sums managed.
121) While settlors
may create trusts for a variety of purposes, the law of trusts views those created to benefit the public at large as charitable in nature.
More and more, trusts are being created by unrepresented settlors
who seldom grasp the instrument's nuances.
Administrative and tax costs are likely to reduce the yield on such trusts to a level where inflation, rising expectations, and an ever growing band of beneficiaries are typically assured to outpace the ability of the trust to deliver the benefits anticipated by trust settlors
This is important for settlors
who, for example, do not want younger generations to have this information until a particular time in the future.