Module 8

• Trust - an arrangement wherein a person (the settlor) transfers the title of property such as money or land to a trustworthy person (the trustee).
• Trust - is built on a strong fiduciary relationship between the settlor and the trustee.
• Trust bank - is a financial institution that enables bank's customers to do transactions.
• A trust bank is an organization that allows its customers to transact with each other though contracts known as "Trusts".
• Trust bank - it facilitates the transfer of assets between customers based on the terms and conditions of the trust agreement.
• Settlor - the individual transferring assets.
• Beneficiary - recipient of the assets.
• Trust bank - serves as the trustee and manages the asset transfer on behalf of the customer.
• The functions of the trust bank include offering investment services, assisting with pension plan design, providing brokerage services in real estate, facilitating real estate appraisals, and offering direct and indirect financing.
• Trust - a legal relationship where assets are held by one party (trustee) for the benefit of another (beneficiary).
• Key characteristics of trust banks are the ff: fiduciary responsibility, specialization in trust administration,long-term focus.
• Trust bank - is a bank that helps in transferring assets among customers through means of formal contracts known as "trust".
• Beneficiary - the customer who accepts the settlor's assets.
• Trustee - role is to monitor and administer the asset transfer on behalf of its customers.
• Trust - a formal document or contract document that spells out which party is the beneficiary and the settlor, the nature, and details of transactions , and terms and conditions relative to the asset transfers.
• Trust bank account - performs several functions such as investment management and asset management.
• Trust bank - generally combines the functions of a depository institution, a commercial bank, and a trusted company.
• Community trust bank - facilitates transactions of asset transfers.
• Personal trusts - created by individuals with the purpose of managing wealth for children, providing for dependents with special needs, or distributing assets after death. eg. (living trusts and testamentary trusts)
• Employee Benefit Trusts - established by companies to manage retirement plans, health benefits, and stock option programs for employees.
• Investment Trusts - offer professional management of investment portfolios for individuals or institutions, often focusing on specific asset classes or investment strategies.
• Escrow services - hold assets on behalf of two or more parties until certain conditions are met eg. ( real estate transactions)
• Trusts - help facilitate intra-family transfers of wealth and their popularity has now been accepted globally.
• Secure trust bank - offers appraisal services on real estate.
• Trust bank account - is a checking account held by a trust.
• Secure trust bank - is vital in giving expert and fiduciary services to families, businesses, and organizations in managing and transferring trusts through an agreement.
• The etymology of the word "credit" stems from the Middle French term for "belief or trust".
• Trust Bank Account has 2 functions : investment management & asset management.
• Community Trust Bank - hold and manage the assets on the beneficiary's behalf as per the terms of the agreement.
• Banking businesses: Deposit business, Lending business, fx business,associated business (ORDINARY BANKING BUSINESS)
• Trust Businesses: Trusts of Money, securities trusts, monetary claim trusts, personal property trusts, real-estate trusts. (OPERATIONS PERTAINING TO UNDERWRITING OF TRUSTS.
• Concurrent Businesses: Real-estate relation business , stock transfer agencies, inheritance related operation (PROVIDES VARIOUS SERVICES FOR ADMINISTRATION AND DISPOSAL OF ASSETS).
• Drawbacks: more expensive compared to normal banks, limited power over assets and trusts,conflict of interest is always possible.
• able to acces not only the expanding market of direct financing but also the traditional market of indirect financing.
• Mitsubishi UFJ Trust and Banking - Japan's largest trust bank
• Federal Deposit Insurance Corporation - insures the trust bank account