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What are the different structures of trusts
There are three main structures of trusts: single unit trusts, combined trusts, and property management trusts.
1. Single unit trusts have only one investor, and this investor provides requirements, with which the trust company creates a product. Generally there is a low expected return, and is driven mainly by banking clients. 2. Combined trusts have multiple investors, and are developed by the trust company itself. The trust then seeks to promote its product and draw in investors. Firms compete for investors, which leads to innovation and generally higher returns. 3. Property management trusts represent a smaller part of the market, and occur simply when a firm manages any non-monetary assets on behalf of its clients. These can include physical assets, intangible assets, or stocks and bonds. These can be used to create revenue through asset backed securities, management of a physical property, or holding stocks for a client until they appreciate to a designated value.
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