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LSDefine

Simple English definitions for legal terms

directed trust

Read a random definition: Iraq War Resolution of 2002

A quick definition of directed trust:

A directed trust is a special type of trust where the person who creates the trust can choose someone else to manage some or all of the assets in the trust. This is different from a regular trust where the trustee manages everything. Sometimes people have special assets or situations that they want a specific person to manage, like a family business. In a directed trust, they can give those assets to that person to manage while leaving the other responsibilities to the trustee. It's important to be very clear about who is responsible for what in a directed trust because it's a new idea and the rules are still being figured out.

A more thorough explanation:

A directed trust is a type of trust that allows the creator of the trust to separate responsibility for managing some or all of the assets from the trustee. In traditional trusts, the trustee manages all of the trust assets and controls the distribution to beneficiaries. However, in directed trusts, the creator can divide these responsibilities.

For example, let's say that a person wants to leave shares of their family business to a specific advisor or relative. They can allocate those assets to the advisor in a directed trust while leaving the other responsibilities to the trustee.

It is important to specifically define the role of the advisor and the intentions of the creator of the trust because the common law and fiduciary rules that govern the trustee may not apply to the advisor. Some states have statutes that define the boundaries between the advisor and trustee, with some giving more oversight to the trustee and others making the advisor completely separate from the trustee.

Overall, directed trusts allow for more flexibility in trust management and can be useful in situations where a specific advisor or relative is better suited to manage certain assets.

direct inheritance | directed verdict

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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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