Understanding the Use of Trusts, Part One

To better understand trusts we need to look at their origin dating back almost 900 years. In the year 1119 A.D., nine knights traveled from France to Jerusalem to explore and excavate below the Temple of Solomon and Harrod’s palace. King Baldwin II of Jerusalem was immediately receptive to the knights and furnished them with room and board and stables of the horses within the palace complex. While in Jerusalem a knight by the name of Hugues de Payens proposed the formation of a new monastic order of knights. King Baldwin II agreed and thus was born the Poor Fellow-Soldiers of Christ and of the Temple of Solomon, more commonly known as the Knights Templar or simply the Templars.

Over the next century, the Templars built over 1,000 strongholds or fortified encampments called commanderies across Europe and the Holy Land. In 1150 A.D. the Templars began issuing “Letters of Credit,” in which pilgrims traveling to Jerusalem could deposit their money with the knights in exchange for Letters of Credit. Upon arriving at their destination, the pilgrims would present the Letters of Credit to the Templars in the local commandery to redeem their funds. This system helped to ensure travelers from losing their wealth to highway robbers or other scrupulous people. This was the first known international banking system and the origin of trusts.

Understanding Trusts | Estate Lawyer Raleigh NC

So, what is a trust? A trust is an instrument in which a person, business, or organization may transfer or deposit their assets (money, vehicles, real estate, etc.), and appoint a trustee - literally a person they trust to manage their assets typically without the oversight of the courts. The person or organization executing the trust is known as the “grantor.” Just as the pilgrims put their trust in the Templars to protect their assets, so too is the grantor putting his or her complete trust in the trustee, therefore the grantor must choose wisely. The purpose of the trust is to protect the assets from adverse debts and leave a written instrument designed to carry out your wishes.

To learn more about trusts and how to better understand them, be sure to check back soon. Our estate lawyer in Raleigh NC will be back with more information. Also, be sure to contact our office if you're interested in estate planning creating a trust in 2020.

Eldreth Law Firm | Estate Lawyer Raleigh NC

Are you over the age of 18 and still don’t have a will in place? If so, consider drafting one. A lawyer in Cary NC can help you get everything documented and finalized. It’s never too early, or too late, to create your estate plan, but the sooner the better.

Our estate lawyer in Raleigh NC is here to help you get your estate plan in order so that everything will be ready should you pass in an untimely manner or become incapacitated at some point. It’s better to be safe than sorry when it comes to an estate plan. Contact us to get started estate planning, today.

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