TRUST UNIT IV

Rules and Functions of Trusteeship / Fiduciary Activities

• Personal Trust

• Institutional Trust

• Court Trust

• Escrow Agreement

• Custodianship

Rules and Functions of Agency

• Investment Management Agreement

• Escrow Agreement

• Safekeeping

• Custodianship

• Transfer Agency

The TRUSTOR transfers/delivers assets to the TRUSTEE who will manage it for the benefit of the designated BENEFICIARIES of the Fund

A living trust created by an agreement whereby the Trustor conveys property or a sum of money to be managed by the Trustee for the preservation of the assets for future use of the Beneficiary and/or to answer for their current needs

Trustor may or may not nominate a third-party beneficiary

• TRUE

• FALSE

When the Trustor passes away, the property is no longer part of his estate if the trust is revocable

• TRUE

• FALSE

Answer explanation

should be irrevocable

How much is the minimum criteria of a Personal Management Trust?

• Php 100,000

• 100,000 USD

• Php 250,000

• Php 500,000

Any termination for causes that are inconsistent with the purpose/distribution clause shall render the OR ineligible from opening a new PMT within a period of three (3) year from the termination date

• TRUE

• FALSE

This type of trust is for people who are not sure that they will not, in the future, need the entrusted property for themselves, or not certain as to who would be their ultimate or final beneficiaries of the trust

In an Irrevocable PMT, Trustor reserves the right to change or amend the terms and conditions of the trust, or to terminate the trust at his pleasure

• TRUE

• FALSE