The functions of “Trust” include: property management, employee benefits, social responsibility, funds management, risk management etc. Various services fulfill everyone’s needs. The advantages of managing property by trust include:
1. Stability
Through trustee and continuity in management, the trust will not be terminated by any accidents. Thus, it can ensure accomplishing trustor’s purpose. It is suitable for long term property transfer and property management.
2. Flexibility
Trust has strong flexibility which makes it be extremely suitable for property transfer and property management. It has been widespread used in most of countries, big families and consortiums. The flexibilities show:
- Integration of property transfer and management
- Variety of establishment methods
- Liberalize in trust purpose
- Planning flexibility of trust benefit
3. Security
Trust property independence, trustee’s responsibility and strict supervision, are the three factors how trust ensure beneficiary’s benefit and make it safer and more reliable. The securities come from:
- Separation of responsibility and benefit
- bankruptcy-remote
- Guarantee of trust income right
4. Other advantages
- Professional service
- Trustor can still enjoy benefits of the property after trust
- Anonymity