Updated: Jun 14, 2022
Young Dolph (RIP)
"Trap N**** mentality I don’t put shit in my name"
This is about one thing: Liability. As a self proclaimed trap nigga Dolph says he don’t keep anything in his name seeming so that if the Feds ever come they wouldn’t be able to seize assets that he has control over. Obviously a relationship like this requires trust in the people close to him to not finesse him out of ownership. The key word here is trust because while trust is what’s needed in a hand shake agreement Trust is also a legal term for a business structures that also lets you protect your assets from liability.
In business a trust is a financial arrangement between three parties. One party (the trustor) gives a second party (the trustee) the ability to hold assets or property for a third party (the beneficiary).There are many types of trust. But the main idea is that they’re entities that will help you control and pass on your assets in a way that avoids risk taxes and fees.
Trusts are essentially a form of control. Designed by separating assets strategically the idea is to take the worry away from concerns you might have about those assets. Some common benefits of a trust include reduced estate taxes, allocation of assets into the desired hands, avoiding court fees and probate, privacy from avoiding public court probate, protection from creditors, or even protection of assets among family members themselves (for conflicts or underage recipients).
The separation of the legal ownership of the trust assets, which lies with the trustee, from the right to benefit from those assets, which lies with the beneficiaries, is the crucial factor to understanding trusts. The major characteristic of a trust is that it provides for a separation of legal and beneficial ownership. With specific conditions outlined in the trust combined with the ability to form trust in jurisdictions that don't require public disclosure of members the goal is that individuals and entities can control their income-earning assets and tax liabilities without being named as a beneficiary or trustee.