Funding A Living Trust With Royalties  

A living trust is one that is set up in the life time of an individual. The individual can consolidate his or her assets under one document. The document will contain names of the beneficiaries of the trust and how the assets that belong to the trust are to be disposed off.

The individual is normally the first trustee, so that he or she does not lose control and can add or dispose off assets of the trust within their lifetime. The trust will also have the name of a second nominee who will assume control should the primary trustee die or become incapacitated. The document, known as a ‘declaration of trust’ should include the social security numbers of the primary and secondary trustees.

Royalties are payments made by one party (the licensee) to another (the licensor) for the privilege of using an asset for a pre-determined period of time. There are various methods of computing royalties. For example, in the oil and music industry, it is a payment as a percentage ownership of future output or revenue from sales from the asset which is transferred to the licensee for a fixed period of time. This would imply that the payments may be ongoing or could be a one-time.

There are different types of royalties such as trademark, copyright, intellectual and know how, to name a few.

Assets transferred to a trust can be tangible, like property, bank accounts, vehicles etc., or can also be a royalty which would include the income arising out of it.

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Funding A Living Trust With Royalties
 

How-Do-You-Change-The-Trustee-Of-A-Living-Trust      A living trust is a trust created in the lifetime of an individual wherein his or her estate is consolidated and the ownership transferred to the trust. The individual in this case is called the grantor, and may appoint himself as the trustee during his or her lifetime. During this period, assets may be taken from or added to the trust at the discretion of the trustee who in the first instance is the individual or grantor. In this manner a living trust gives control to the trustee of his assets during his lifetime. More..

 


 

 

 
   
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Funding A Living Trust With Royalties )
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