STAR trusts are very useful tool for estate planning and asset protection and be used for charitable and non-charitable purposes. A STAR trust is a form of purpose trust that removes the right of beneficiaries to enforce the trust and places it with specialty appointed “Enforcers”. The Enforcer is tasked with enforcing the STAR trust, bringing about a separation between enjoying the benefit of the Trust assets, and being responsible for the Trust’s enforcement. It is only the Enforcer (or the Court) who has the power or the duty to enforce the STAR trust.
Most common uses for this type of trust:
A STAR trust can be established to meet the specific requirements of a particular transaction but drafting the purpose of a STAR trust can be the most difficult aspect of establishing a valid trust. At AvixFCU, we coordinate with Trust specialist to safeguard the established of this trust.