What Is A Passive Trust

What Is A Passive Trust

A passive trust gives legal ownership (including control) of assets like money or real estate to a trustee, who is then responsible for distributing those assets to a beneficiary at a predetermined date. In order to make a Bulletproof Trust passive, a predetermined date of vesting (closing) the trust must be set within the original indenture. Passive trusts are often used in connection with homestead property to exempt a certain dollar amount of the property's tax valuation.

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