Trust - definition of trust by The Free Dictionary.
A grantor trust is an entity in which the person establishing the trust retains a current interest and control of the trust. Trust grantors retain the rights to withdraw funds for any purpose from the trust.
The client ledger shows all transactions that flow in and out of the lawyer’s trust account for that specific client. At a minimum, a lawyer must send each client that client’s ledger once per year or as soon as all of that client’s money held in the trust has been distributed.
A trust, in legal terms, is any arrangement in which one party holds property for another party's benefit. The property owner never gives up control of the assets — cash, stocks, bonds, real estate — but the trustee becomes the owner for legal purposes.
The money that is then raised from these events, may be held in trust for the permanently incapacitated individual and used for their benefit throughout their life. For example, funds may be used to pay for health treatment, a holiday, specialised equipment or a carer for the beneficiary.
It is safer for the purchaser if he pays the money to the attorney for the seller as a stakeholder. In such a case, the attorney becomes the custodian of the deposit for both the parties. The deposit, in this case is not given to the seller until completion and if the purchaser withdraws from the contract due to the seller’s default, the deposit is returned to the purchaser along with interest.
Holding money or other property on trust You must account to your client for money or other property you may receive from your client or on their behalf that you hold on trust for them. This is one of your obligations as a registered tax practitioner under the Code of Professional Conduct (Code item 3).
The highest account balance during the reporting period refers to money held as CASS 5 client money under either a statutory trust(s) or non-statutory trust(s). The amount should be taken from the firm’s own records and should include client money held as agent of the insurer which is co-mingled with other client money in a client money account.