Common Law Trusts
What is a Common Law Trust?
A Common Law Trust is a private, contractual arrangement where a person (the grantor) transfers assets to a trustee to manage for the benefit of one or more beneficiaries. Unlike statutory trusts, which are governed by specific laws and regulations, common law trusts are based on traditional legal principles and contract law.
Protecting Your Assets and Legacy
Key Features
Private and Confidential
Common law trusts are not required to be registered with government agencies, ensuring privacy and confidentiality in asset management.
Based on Contract Law
They operate under common law principles and contract law rather than statutory regulations, offering flexibility in their structure.
Asset Protection
Properly structured trusts can protect assets from creditors, lawsuits, and other claims, preserving wealth for beneficiaries.
Flexible Management
The terms and conditions of the trust can be customized to suit the grantor’s specific needs and goals.
Separation of Ownership
Legal ownership of the trust assets is held by the trustee, while beneficiaries enjoy the benefits of the assets.
Estate Planning Benefits
Common law trusts provide an efficient way to transfer wealth, avoid probate, and reduce estate taxes.
Where assets are safe, and legacies live on.
With our guidance, you can set up a Common Law Trust that provides you with complete control, confidentiality, and protection for your assets and legacy.
Frequently Asked Question
A Common Law Trust is a private, legally binding arrangement where a grantor transfers assets to a trustee for the benefit of beneficiaries. It operates under common law principles rather than statutory regulations.
To create a Common Law Trust, you need to draft a trust agreement, appoint a trustee, and transfer assets into the trust. Legal guidance is often recommended to ensure compliance with applicable laws.
A trustee can be an individual or an institution, but they must be someone who is trustworthy, responsible, and capable of managing the trust’s assets according to its terms.
You can place a variety of assets in a Common Law Trust, including real estate, bank accounts, investments, business interests, and intellectual property.
Yes, when properly structured, a Common Law Trust can offer protection against creditors, lawsuits, and certain other legal claims.
The beneficiary is the person or entity that benefits from the trust’s assets or income. They have rights to receive the benefits outlined in the trust agreement.
A living trust is typically revocable, allowing the grantor to make changes. A Common Law Trust can be either revocable or irrevocable, offering more flexibility in how it is structured.
Setting up a Common Law Trust can take anywhere from a few days to a few weeks, depending on the complexity of the assets and trust structure.