How a trust protects your investment to your rest

Holiday (or joint) ownership is widely spread all over the world and enables dozens of millions of families to have annual vacation in luxury apartments at the global best resorts. Before the decision about investing of much funds to your happy and safe vacation with holiday ownership for dozens of years ahead it’s necessary to make sure that your investment is protected. Depositing real estate in trust management allows you to make joint ownership of real estate reliable, secure and carefree.

Comfortable regular rest for the families

In the twenty first century, tourism and travel have become available to a large number of people in many countries. Resort areas are multiplying on all continents, residents and institutions leave the historic centers of cities in favor of the invading flow of tourists. Travel has become nice, fun and fast; you can fly anywhere in the world for 15 hours by plane.

Traveling, when not alone, or in pair, but by family is expensive very often. Many families would be eager to travel for vacation more often, for more remote or exotic resorts, but the cost of such group travel is a constraining factor too often.

The joint ownership of real estate has become for such families a solution how to take rest more often and better. Having originated in the seventies of the previous century, this type of recreation involves new participants at the speed of a large snow avalanche. After all, this holiday allows them to relax with their family as often and as comfortable as they never dreamed of, they use the services of travel agencies or organize their own vacation.

How to reach the arrangement with your co-owners

Nowadays, tens of millions of families around the world are co-owners of various properties, from luxury villas on the coast of warm seas and apartments in resort towns to small flats in the centers of global capitals. The agreements between the co-owners allow them to use their property in turn, sharing both the cost of ownership and the cost of maintaining such property.

However, how could the use of such property be honestly shared between the co-owners? How could a joint decision be taken if a co-owner is eager to update the furniture or to build an outbuilding? What could be done if a party refuses to pay his share for the utility expenses? This kind of household issues can turn a carefree property ownership and rest in it into a nightmare. It should be acknowledged that such disputes and situations often occur even among members of the same family. And what if the co-owners are your friends or even people completely unfamiliar to you?

Statistically, most of the co-owners at the coasts of Spain and Hawaii, the global leading countries in the number of the jointly used real estate, have never met each other. They successfully minimize possible troubles from property sharing through the association to the clubs or the association of homeowners. Clear rules for everyone, regular meetings of co-owners with the solution of the accumulated conflicts and a paid administrator or even a whole office of administrative workers allow such associations to operate successfully for decades.

 The trust has granted me an opportunity to sleep safe and calm

The word ‘trust’ means ‘confidence’. What is the difference between the notions of ‘belief’ and ‘confidence’? A person can believe blindly, but confidence is a belief supported by actions and deeds. At first glance, a trust is very similar to a normal contract of assignment: one person authorizes another to manage his/ her property in one way or another. However, the similarity is purely external. The peculiarity of the trust is that the thing that is transferred to the management, irrevocably becomes the property of the manager. I can give an example of the situation where the trust is used. An old millionaire retires because he is no longer able to manage his entire fortune. He wants his sons to continue his work, but he does not want to simply give his sons large sums of money, apprehending that young people could squander them. Thus, our millionaire finds a reliable lawyer and concludes a trust agreement with him. Under this contract, the lawyer receives the state of a millionaire (trust founder) in his management. The lawyer undertakes to manage the fortune only and exclusively in the interests of the sons of a millionaire. He (the lawyer) has to finance their education, cover their expenses to set up their own business, etc. At the same time, the trust contract strictly prohibits the lawyer to pay from the allocated fortune for the expenses that would be unreasonable use of money in the opinion of the father (bets on races, excessive restaurant expenses, etc.). The founder of the trust may appoint a fixed annual rewarding for the performed work to the lawyer (Trustee) himself from the amount of the transferred property. Global Actual Services is the personal lawyer of each of us, the members of the club Alliance, that will monitor and guarantee the observance of our rights in any situation having taken control of our possession.

Dmitriy Levitskiy (Ukraine)
Private lawyer