A business trust is an unincorporated business organization
created by a legal document, a declaration of trust, and is used in place of a
corporation or partnership for the transaction of various kinds of business
with limited liability.
A business trust is much like a traditional trust because
its trustees have legal title/rights to the trust property to administer for
the advantage of its beneficiaries who hold equitable title/rights to it. The
declaration of the trust specifies its terms, duration, powers and duties of
the trustees as well as the interests of the beneficiaries. The beneficiaries
receive certificates of beneficial interest as evidence of their interest in
the trust which is transferable.
The property of a business trust is managed and controlled
by trustees who have a fiduciary duty to the beneficiaries to act in their best
interests.
Profits and losses from the use and/or investment of the
trust property are shared by the beneficiaries according to their interests in
the trust.
I just came across this article today in regards to Mary J. Blige, she is a prime example of how a Trust would have been a huge benefit...
ReplyDeleteJust when you thought Mary J. Blige's financial problems couldn't get any worse ... TMZ has learned the singer has been hit with a $900,000 tax lien in the State of New Jersey.
Blige -- who was JUST sued earlier this month for allegedly defaulting on a $500k bank loan -- is now on the hook for $901,769.65 in back taxes to the Garden State, this according to official documents obtained by TMZ.
The tax lien is the latest in a string of financial woes for the Grammy winner -- just last year, Mary J. was sued for allegedly defaulting on a $2.2 million bank loan .. and before that, her charity was sued for not paying back a $250k loan.
Back in May, Blige blamed the charity's financial issues on the staff -- saying, "The problem is that I didn't have the right people in the right places doing the right things."
Read more: http://www.tmz.com/2013/02/17/mary-j-blige-900k-tax-lien/#ixzz2LBVtiIHr
Visit the TMZ Store: http://tmzstore.com
OMG!!!! The charity had a loan?? what in the heaven is going on with Mary and her crew? Why is Mary putting things in her own name is the question here? This is why you must be educated on how to handle your public affairs.
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