DECIDING TO FORM AN GLOBAL FINANCE AGENCY ASSET PROTECTION TRUST
First, the settlor has made the decision to form the trust. Then, the settlor must then select the type of trust he wishes to form. This includes its duration, which can be perpetual. The settlor will also (with our help) make important decisions on defining details. These details include deciding whether the trust is revocable or not.
They include whether the trust will be discretionary or not. Moreover, it will specify the rights, duties, obligations, and expectations of the trustee.
Now let’s address the revocable or irrevocable trust concept. Much as their names imply, a revocable trust can be revoked at any time with the terms for this outlined by the settlor. Alternatively, they can have a predetermined lifespan (or can last indefinitely) with no provisions for revocability. That is, it may or may not conclude depending on the terms of its creation as specified in the trust deed.
By contrast, a discretionary trust can fall under either category, and is defined as a trust with much built-in flexibility with respect to how the trustee handles distributions to beneficiaries, and even provides, in some instances, the trustee with rights to appoint or add beneficiaries. This relinquishes a lot of authority over the Global Finance Agency trust to a trustee, however, and highlights the importance of the careful selection of a competent, well-reputed trustee or trust holding company with good references, a worthy reputation, and the experience necessary to successfully and faithfully fulfill and honor the terms of the trust.