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Tougher FAA Astronaut Wings rules could leave Bezos & Branson in limbo
How high do you need to fly in order to officially qualify as an astronaut? That’s an answer the US FAA has just weighed in on and, while the definition of where space begins may still be controversial, what it takes to get the coveted Astronaut Wings is now tougher – and could have big implications for billionaire space-fans like Jeff Bezos and Richard Branson.
The limits of just where space actually begins is a tricky topic, with no single definition. Many take the Kármán Line – the 62 mile (330,000 feet) boundary above the planet’s mean sea level – as being the official point, though the US Federal Aviation Administration (FAA) is actually a little more generous there.
There’s also a third criteria, however, which those crewmembers onboard must satisfy. According to the FAA, they need to have “demonstrated activities during flight that were essential to public safety, or contributed to human space flight safety.”
Figuring out exactly what qualifies under those rules appears to have been left intentionally vague, giving the FAA some wriggle-room in how it decides who gets their wings and who doesn’t. While both the Virgin Galactic and Blue Origin flights went above the FAA’s 50 mile mark, the FAA will have to decide whether or not they demonstrated any activity that was essential to public safety or human space flight safety.
Ironically, though Blue Origin and Jeff Bezos flew higher than Virgin Galactic and Richard Branson did, their argument may actually be weaker. New Shepard’s flight was all controlled autonomously, rather than by a pilot onboard the spacecraft, effectively meaning Bezos and the others onboard – including Wally Funk and an 18-year-old last-minute substitution – were certainly passengers rather than what we might think of as crew.
There’s some room for negotiation, nonetheless. The FAA has a loophole for honorary awards, for “individuals whose contribution to commercial human space flight merits special recognition.” If the Associate Administrator for Commercial Space Transportation (AST-1) at the agency decides someone has “demonstrated extraordinary contribution or beneficial service to the commercial human space flight industry” then they can be granted a set of Astronaut Wings, even if they don’t meet all the other official criteria. Whether the FAA will make use of that for this month’s twin launches remains to be seen: it could decide both Bezos and Branson deserve the plaudit based on their overall contributions to commercial space flight, though not being able to guarantee the same thing to future paying passengers could dampen the sales pitch.
The FAA is upfront about its goal with the program, and the changes it makes. “In order to maintain the prestige of Commercial Space Astronaut Wings,” the agency adds, “the FAA may further refine the eligibility requirements at any time as it deems appropriate.” In short, just because you can afford a ticket on a space tourism flight, don’t assume you will automatically qualify as an astronaut.
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Project management is more like a straightforward approach. After a project is assigned, we list the requirements, set a deadline, and start working on it. Nobody plans the project, especially smaller tasks that can be finished within a week or a month. That’s how our ancestors accomplished projects and got good results. That’s not how it works in reality, though. It’s important that you follow a standard or a proven procedure for completing projects — whether they are small or complex.What are Project Management Rules?
Project management consists of several steps, and each must be completed before moving on to the next step. Despite several project management methodologies and tools that claim to make the management part easier, the percentage of failed projects seems pretty disappointing. Projects usually fail when the principles aren’t applied and followed correctly. That’s where project management rules come into the picture. In this post, we are going to discuss everything you should know about these rules, how to implement them, and how they can help speed up your project completion.Set clear objectives
You don’t want your team or the stakeholders asking you about the project’s objectives while you are in the middle of the project. It’s important to set clear objectives before starting work and communicate these goals to each individual involved.
Clarify what you’d like to achieve from this project. How will it benefit your organization? And how is it going to drive your team toward the final objectives? It’s easier to track progress and set realistic expectations when you have a clear goal in place.Have a clear project scope
A project manager sets a clear and detailed scope for the project before starting work. This helps them identify when the project is to be finished and delivered. It saves you future headaches. Outlining a scope doesn’t mean you are going to follow it till the end. In fact, most project scopes are amended multiple times before the team is satisfied. But this will give you a good place to start.
The project scope includes the details, deadlines, breakdown of the project into several small tasks, and budget worksheets. These must be sent to the stakeholders for approval. The better and more detailed your project scope looks, the easier it is to work on a project. Creating a project scope is the most challenging part of any project, as you need to consider the stakeholder’s wants and come up with a plan that fits each stakeholder’s needs while staying within budget and finishing each task by the deadline.Frequent communication
Once the project scope gets the green light from the stakeholders, you can start work. But, make sure communication is effective for successful project management. You need to keep your employees and stakeholders up-to-date with the changes in the plans or your progress. Keeping your team informed about the project’s current status will ensure that they are on the right track.
It also helps managers identify potential problems, such as budget constraints, that might arise later. As a project manager, you must know the importance of open communication. Allow your team to share their creative ideas and concerns. Remember, the success of any project depends on the team that executes it. So, if you listen to your employees and work on their feedback, you will have your desired results.Set milestones
Milestones serve as several points that you’d achieve until you complete the project. Of course, the last and the biggest milestone would be a successful project completion and delivery within the timeline. Dividing your project into these small milestones will motivate you and your team to work harder to achieve the final goals. Milestones also help you track your progress at different intervals. For example, if your project has a deadline of 6 months, set milestones for every month.
Suppose it’s a mobile development project, and you’ve set a deadline for finishing the UI and UX within 2 months. Check if you have finished the interface design by the end of the second month. Then, set the next milestone. It boosts your morale and is an excellent way to know how far you’ve come and how long it takes until your project is finished. After hitting these milestones, you must conduct a team meeting to discuss the follow-up plan.Reward your teams
Just achieving the milestones won’t motivate your employees. You need to set incentives to encourage your team to achieve different milestones. The rewards at each stage of the project completion will make your team feel empowered. They will be more focused on the project. They will show better productivity. You can reward the team as a whole or each employee separately (whatever works for you).Risk management
Risk is an inevitable part of any project, no matter how simple or small it is. Identifying these risks ahead of time and planning solutions for them can help mitigate these risks. A professional project manager knows how to plan risk management strategies during the planning stage. It’s not possible to forecast all possible risks before starting a project. For example, customer trends change frequently. You can never know whether your audience will want your upcoming product when it’s launched as much as they do now.
Work with your stakeholders, clients, business associates, and the team to identify these risks. You should at least consider the risks in areas like lack of resources, technical delays, technology failure, or communication failure. You can also assign this part of project management to someone who specializes in assessing risks and handling them.Bottom Line
For successful project management, it’s essential that you organize all resources effectively and plan everything ahead of time. Choose your team wisely and delegate the responsibilities based on your employee’s specialization. The above golden rules are applicable to each type and complexity of the project, whether you are working on a technical task or a management-related project. Keep your team and stakeholders always in the loop. The above tips will help you achieve your objectives.
The Federal Communications Commission on Tuesday voted on party lines to approve rules that would prohibit Internet service providers from unreasonable discrimination against lawful content on their networks, the first time the agency has enacted binding net neutrality regulations.
“On one end of the spectrum are those who say government should do nothing at all on open Internet. On the other end are those who would adopt extensive, overly detailed and rigid regulations. A few on each side impose litmus tests. To some, unless their test is met open Internet rules are ‘fake net neutrality.’ To others unless their test is met, open Internet rules are, quote, ‘a government takeover the Internet,’” Genachowski said.
“For myself, I reject both extremes in favor of a strong and sensible non-ideological framework, one that protects Internet freedom and openness and promotes robust innovation and investment throughout the broadband ecosystem.”
The order established a transparency requirement for both fixed and mobile broadband providers mandating that they make disclosures about how they manage their networks, their performance characteristics and commercial terms.
The item also includes a no-blocking rule that would require wireline ISPs to transmit all lawful content, services and applications, and allow users to connect any non-harmful device to the network. For wireless providers, the rule would be limited to a ban on blocking access to websites and applications that compete with their own core services, such as voice and video telephony offerings, though the commission said it will continue to monitor the evolving mobile sector to evaluate if more rigid rules are necessary.
The rule presumes that paid prioritization arrangements are unacceptable, though there are some allowances for managed services that depend on delivery guarantees, and the commission will evaluate complaints on a case-by-case basis, which critics contend will only add to the very regulatory uncertainty the rules are intended to eliminate.
Both Republicans on the panel, Commissioners Robert McDowell and Meredith Attwell Baker, made uncommonly strenuous and lengthy statements of opposition at this morning’s meeting, assailing the order on a variety of fronts.
Both complained that they only received the final order, with substantive changes from the previous draft, minutes before midnight on Monday, and argued that the FCC lacks the legal mandate to enforce the rules it adopted today.
In April, a federal appeals court ruled that the FCC did not have the statutory authority to punish Comcast for secretly throttling traffic on its network. Genachowski and commission attorneys said today that they had based the new order on a different legal framework that put the rules on a solid foundation, but McDowell predicted that a court would eventually strike them down on the same grounds that the Comcast order was vacated.
“The FCC is not Congress. We cannot make laws. Legislating is the sole domain of the elected representatives of the American people,” McDowell said, noting that a majority of lawmakers had signed their names to letters to the commission urging it to shelve an earlier proposal to reclassify broadband as a regulated telecommunications service. While Genachowski ultimately abandoned that idea in favor of today’s more modest order in a bid to garner industry support, the Republican commissioners argued that today’s vote was nonetheless a violation of the will of Congress.
“The FCC has provocatively charted a collision course with the legislative branch,” McDowell said, calling this “one of the darkest days in recent FCC history.”
That collision is likely to occur very early in the next session of Congress, when a Republican majority in the House and a strengthened minority in the Senate move to undo the rules.
Sen. Kay Bailey Hutchison (R-Texas), who last week submitted an amendment to an appropriations bill that would block the FCC from using public funding to enforce net neutrality rules, today announced her plan to introduce a resolution of disapproval that would seek to roll back the commission’s new order.
Meantime, Fred Upton (R-Mich.), the incoming chairman of the House Energy and Commerce Committee, pledged “immediate action” in the next session of Congress to overturn the FCC’s action.
“The FCC’s hostile actions toward innovation, investment and job creation cannot be allowed to stand,” Upton said in a statement. “We must use every resource available, including the Congressional Review Act, to strike down the FCC’s brazen effort to regulate the Internet.”
Ultimately, Commissioners Michael Copps and Mignon Clyburn cast votes of partial approval, saying that the order, though imperfect, is preferable to no rules governing service providers at all. Both said they would like to see the rules adopted today strengthened in the future.
“In my book today’s action could and should have gone further. Going as far as I would have liked was not, however, in the cards,” Copps said. “The simpler and easier course for me would have been dissent, and I considered that very, very seriously. But it became ever more clear to me that without some action today, the wheels of network neutrality would grind to a screeching halt for at least the next two years.”
Now, the next two years will in large measure determine the impact Genachowski’s framework has on ISPs and Web companies, and whether it can survive the expected legal and congressional challenges, according to Stifel Nicolaus analyst Rebecca Arbogast, a former division chief at the FCC.
“Because the rules are very high-level, their meaning and impact will be determined by how the facts on the ground develop over the next few years, and thus we expect the battle will continue in the marketplace and through FCC case-by-case enforcement, as well as in Congress and the courts,” Arbogast wrote in a research note.
Kenneth Corbin is an associate editor at chúng tôi the news service of chúng tôi the network for technology professionals.
Rules, Realities, and the Holy Grail Alcohol on campus: can responsible drinking be taught?
Kenneth Elmore, dean of students, strongly emphasizes his individual, case-by-case response to alcohol-related infractions. Photo by Kalman Zabarsky
Part five of a five-part series exploring drinking on campus.
At a university searching for ways to teach responsible drinking and discourage alcohol abuse, Matthew Bae (COM’12) offers what seems to be a prevalent assessment: “BU’s such a big school. They can’t possibly be responsible for telling somebody that they have a problem. They do as much as they can. They make sure students know that it’s not legal if they’re not 21, and if you’re 21 there’s a limit. And if people break that, there are consequences. There are no surprises, no punches.”
There is also no respite for the police, resident assistants, and administrators whose job it is to enforce alcohol-related regulations and guide those students who drink toward a more healthful use of alcohol. The Judicial Affairs Office reports that between January 2009 and mid-October 2010, 1,409 alcohol violations were reported to either Judicial Affairs or Residence Life.
Lindsay Cherry (CGS’11) puts it succinctly: “Students are prone to drink. It’s what they do to have fun; I don’t think BU can stop it.”
So what is the best way to teach young adults to drink responsibly? What is a dean of students supposed to do?
“The best thing BU could do to would be to make people aware of the negative consequences, like date rape, instead of threatening them with university punishment,” says Hannah Simkins (CAS’11). “While I understand that BU must have a policy on underage drinking, I personally think people are more likely to make responsible decisions for themselves if they’re well-informed.”
David McBride, director of Student Health Services, says that encouraging college students to use alcohol responsibly is a long, hard road, perhaps an eternal road. But, he says, BU is doing much better than it was doing a few years ago. “We are newcomers to the realm of college drinking prevention,” he says. “Our program is really only four years old. We do a great job of enforcement, but we need to do more on prevention.”
Which is not to say that enforcement is the easy part. One thing that experts agree on is that when it comes to encouraging responsible drinking, nothing is easy. So while the University’s position on alcohol-related behavior seems simple—if it’s not legal in Massachusetts, it’s not legal on the BU campus—the numbers reveal a more complicated equation of crime and punishment. Of the 1,409 alcohol violations between January 2009 and mid-October 2010, 360 involved students who were transported to local emergency rooms, 271 cited for alcohol being consumed by a minor, and 76 charged with either underage possession or procuring alcohol for underage drinkers.
David Zamojski, director of residence life and an assistant dean of students, says that for students living on campus, disciplinary actions vary depending on individual circumstances. (Judicial Affairs handles incidents that happen on the street or involve students living off campus; Residence Life handles those that occur in dorms.) The first decision, he says—to arrest or not to arrest—is made by BU Police.
Matthew Tse (CAS’13) thinks at least one of their decisions ill-considered. Tse, who is not yet 21, was recently charged by BU Police with possession of alcohol. “My housemate, who’s 24, bought alcohol and let me hold the bag as we were walking down the street,” he says. “The BU police came up and said, ‘Hey, that’s possession of alcohol.’ They reported us and confiscated the alcohol. I felt I wasn’t in the wrong, but the police say to take it up with the courts.”
Tse says he expects to receive a court summons.
Boston University Police Captain Robert Molloy says the first concern is always the safety and well-being of the students. Court summonses, he says, are “the last thing we want to do.”
If a student appears to be intoxicated in a dorm, Zamojski says, RAs will ask the police to assess the situation, a routine procedure that some students believe is overkill.
“When students are caught with alcohol in the room, the question should be, how much alcohol is this kid drinking?” says Daria Whalen (CAS’11) “Especially if it’s a freshman or sophomore, obviously underage, it should be a question of, are they abusing it in a way that is dangerous?”
Bae says the policy doesn’t stop drinking, but it does teach students to be more discreet. “I can say that 100 percent of the people I know—they get in trouble, they go through the process,” he says. “Then they’re just more careful about it. They don’t stop; they just make sure they don’t get caught again.”
But a College of Arts & Sciences junior who didn’t want her name used says that disciplinary action helped a friend realize that she had a drinking problem. “In extreme cases,” says the student, “discipline does help.”
For alcohol violations that take place in dorms, the task of determining appropriate disciplinary action falls to the residence hall and area directors (if the student is not arrested). “Our disciplinary process is not strictly punitive,” says Zamojski. “There is an educational component to it. Students who violate the alcohol policy generally are expected to attend an alcohol education class led by professionals trained by Student Health Services. We do want some consistency, but we base our disciplinary decisions on the merit of the case, and handle every student as an individual.”
Elmore says that Judicial Affairs follows a similarly individualized path to disciplinary action. He says that while the University can’t officially grant amnesty to students who break the law, administrators work hard to find the most productive response. “It may not be discipline,” he says. “But we will ask students for some responsibility and accountability for their actions.”
Elmore strongly emphasizes his individual, case-by-case response to alcohol-related infractions in defending the University’s refusal to adopt a policy of medical amnesty, which would pardon underage students who receive medical attention for overdrinking. Harvard has such a policy. Northeastern has one, and so does Emerson. The issue has long been a hot-button item for students.
Student Union president Arthur Emma (CAS’11) calls medical amnesty “a huge issue for the majority of students on campus,” adding that most students don’t know what to do when they or their friends get sick from an alcohol binge.
Elmore says he can’t believe that a student “would let someone suffer medically, or even die, because he might get in trouble.”
BU’s Lifebook states that students in such situations won’t “ordinarily” be subject to disciplinary actions as long as they complete recommended education and counseling programs. Sexual assault victims who had been drinking when assaulted are not subject to any disciplinary actions.
Like most universities’, BU’s efforts to discourage irresponsible use of alcohol are not purely reactive. Administrators and RAs try to head problems off at the pass. That effort starts at Orientation, where incoming students get the lowdown on campus drinking policy from Daryl DeLuca, an assistant dean of students. DeLuca urges new students to abide by drinking-age laws with a true story of a student who tried unsuccessfully to conceal his illegal drinking. Fearing discovery when someone knocked on his door in Sleeper Hall, he launched his keg out his eighth-floor window.
During move-in week, Zamojski welcomes students in an email that also lays out University regulations, including rules about drinking. And this fall, BUPD officers started visiting freshman dorms early on weekend nights to hand out information about drinking and how to notify BU Police if someone is in danger.
“It’s just to try to touch base with students as they’re going out for the evening,” says BUPD’s Molloy. Officers also make the rounds at residential life meetings and orientation sessions to discuss alcohol abuse. RAs are expected to follow up the effort with discussions about drinking and other regulations at the initial floor and house meetings in early September.
“RAs help students understand certain realities of life,” says Zamojski. “They let students know that if they carry a fake ID or if they are under 21 and transport alcohol, they will be subject to police intervention, possible arrest, and a possible summons.”
They may meet with professional counselors there or with one of a dozen or so student health ambassadors, who are trained to work as liaisons between their peers and SHS.
Elizabeth Douglas, the University’s coordinator of alcohol and drug education programs, has some additional plans on the drawing board. Douglas hopes to rev up a program to train local bar owners and servers to recognize when patrons have drunk too much. Participants include Boston and BU Police, the Allston-Brighton Substance Abuse Task Force, and the Boston Area Rape Crisis Center.
William DeJong, a School of Public Health professor of community health services, who develops online alcohol education for college students nationwide, says the University has some useful programs in place, among them Student Health Services programs such as BASICS (Brief Alcohol Screening and Intervention for College Students), which offers an online report card for students to assess their drinking, get follow-up with abuse specialists if necessary, and learn the real skinny on their peers’ drinking habits. That’s important, he says, because research shows that many students believe that their peers drink more than they actually do, and consequently are encouraged to overindulge.
There are, of course, a great many things that universities can do to discourage irresponsible drinking, but as the CAS student who didn’t want her name used puts it: “There’s never going to be that perfect answer. It’s good that the University wants to make sure students are being responsible, but at the same time, we are adults. And we are responsible for our own decisions.”
Getting Help: Information about alcohol abuse treatment and support at Student Health Services can be found here. Learn more about alcoholand your health here. Resources and information about reporting sexual assault can be found here.
AlcoholScreening.org,a tool for confidentially assessing drinking and finding help, was developed by researchers at the BU School of Public Health.
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Imagine watching your favorite sports team in crisp, clear, larger-than-life detail like music mogul Clive Davis, who watches his beloved New York Yankees on The Wall in his home. Or take Phil Trubey, who hosts movie nights in his home theater that boasts its own marquee, ticket booth, and concession stand.
The Wall has revolutionized the large-format display market with its sleek, futuristic look and user-friendly interface. From grand cruise ships and casinos to high-end showrooms, The Wall provides the perfect way to showcase products and services in extraordinary detail. But why not incorporate it into your own home to elevate its design and enhance the visual experience?
Today, individuals can create the same larger-than-life “wow” moments inside their private spaces, such as yachts and home theaters. Similar to its more business-oriented counterpart, The Wall All-in-One features state-of-the-art technology that delivers unparalleled contrast and immaculate detail. The Wall All-in-One, however, is designed for simple installation.The ultimate LED screen for private residences
Most movie theater screens don’t come close to matching the picture quality of The Wall All-in-One. That’s because they still use digital projectors, which can’t compete with high dynamic range (HDR) imaging and microLED technology.
Discerning differences in color wavelengths is essential to achieve the most lifelike and realistic images — and the greater that difference, the better. Black Seal Technology creates a perfectly uniform canvas on which Ultra Chroma Technology can produce vibrant, precise, and accurate colors. This renders optimum peak brightness and grayscale expression — a combination that creates unparalleled contrast for you to amaze your guests. Because it creates a protective layer around each individual LED module, The Wall All-in-One also generates less heat than other direct-view LED technologies, making it more energy efficient and durable than other large-format displays.How to plan and deploy direct view LED signage
Everything you need to know about choosing your LED displays for optimal viewing indoors and out. Download NowAI upscaling powers next-level detail and definition
The Wall All-in-One also boasts the newest and most innovative display technology on the market today, including the ability to upscale images using AI. The machine learning-based AI that is built into The Wall All-in-One analyzes and adapts content in real time rather than stretching it to fill a 4K display, as is the current industry standard.
Instead, Samsung’s AI mimics the human neural network to automatically populate additional pixels, improve the display’s resolution, and produce crisp, sharp visuals. In addition to upscaling video resolution, the display’s built-in AI reduces video background noise and repairs distortions caused by file compression. Upscaling resolution may vary based on the resolution support of individual models.Up and running with easy, seamless installation
Since there’s no special equipment or components involved, The Wall All-in-One requires significantly less installation time, typically only taking two people about two hours. And while most video wall installations require separate components, The Wall All-in-One integrates the control box and speakers into the device, so there’s no messy wiring or lengthy and confusing configuration to worry about, making it one of the best LED screens for the home theater market.
Most importantly, once installed, it operates like a standard television. You can watch live TV or stream movies, shows, and music from your favorite apps. Connect and mirror up to four devices simultaneously for collaborative meetings and events, or take video calls in style with integrated software features such as LogiTech cam, Google Duo and Cisco Webex.
The Wall All-in-One comes in just two sizes and two resolution types, which makes choosing the appropriate model for your space a fairly easy decision.The Wall All-in-One gets you in the large-format game — fast
The Wall All-in-One includes everything needed to begin immediate operation. The speakers, control box, and wall brackets are all integrated directly into the display, so you can skip the confusing configuration process and simply focus on getting the display up and running quickly.
For discerning individuals with an appreciation for detail and an eye for quality, The Wall All-in-One provides easy installation, unrivaled picture quality, and effortless operation.
Discover the endless applications of Samsung’s The Wall All-in-One, and deliver the ultimate viewing experience right out of the box. And find out everything you need to know about selecting LED displays for optimal viewing — indoors and out — in this free guide.
What is a Trust Account?
A trust account is a legal arrangement where a grantor lets a third party manage the assets for the trust’s beneficiary. The grantor (settler) is the trust’s creator, and the third party is known as the trustee.
Typically, the beneficiary can be an individual or a group who shares a professional or personal relationship with the grantor. The trusts’ assets can be anything of value, such as real estate, bonds, stocks, etc.
Start Your Free Investment Banking CourseKey Takeaways
A trust account is a setting that allows a trustee to manage the grantor’s assets on behalf of its beneficiaries.
The four most common types are living, testamentary, revocable, and irrevocable trust accounts.
Families set up these accounts for their children, who can claim the assets after fulfilling laid conditions. Upon that, attorneys use these for their clients’ payments.
These accounts have both limitations and benefits. For example, it is a complex and expensive structure but provides privacy and helps avoid legal hassles.Purpose of a Trust Account
Banks or trust companies are the ones that set up trust accounts for their clients. It is usually for the legal protection of the assets of an individual or a group. It ensures that the allocation of assets is as per the beneficiaries’ wishes. While opening such an account, the grantor determines the purpose of the account.
For instance, parents set up a college trust for children in their early years such that the funds could dispense when they attend a university.
It can also be for minors, which they can redeem once they attain the legal age.
On the other hand, attorneys create these accounts to ensure that the client’s funds do not mix with the law firm’s.How Does it Work?
When grantors create a trust account, they give the trustee the responsibility to manage the assets.
The trustees handle the trust until the transfer to the intended beneficiaries. In case of any unexpected events, the grantor, in most cases except for irrevocable trust, can make changes to the account.
A trust ensures the assets are transferred safely from the trustees to the beneficiaries. These also separate one’s assets from their portfolio, protecting the assets from potential creditors. In the real estate industry, these are legal obligations. They are responsible for properly managing the funds and keeping them compliant with the applicable legislationTypes of Trust Accounts a) Living Trust Account
The grantor creates a living trust when they want to pass the assets while alive.
The trustee manages the assets until they can hand them over to the eventual beneficiaries. It helps transfer the grantor’s assets to the inheritors without legal hassle.b) Testamentary Trust Account
The grantors create this type of trust as a part of their last will.
This trust comes into effect after the death of the grantor.
Such trusts manage assets for the beneficiaries, usually the grantor’s family.c) Revocable Trust Account
As the name suggests, in a revocable trust, the grantor still has the rights to the assets.
They have the authority to change the terms of the trust or terminate it entirely.
Usually, they use this account in estate planning to manage the assets.d) Irrevocable Trust Account
In contrast to the revocable account, the grantor relinquishes all ownership of the property in this account.
They cannot make any changes to the terms of the trust after its creation.
However, it helps them protect their assets from creditors or minimize their taxable estate.How to Set it Up?
The process of setting up involves the following steps.
Select the Trust type:
Select the type of trust that best suits the intended purpose. The intention behind the trust will decide the form of account one needs to open.
Draft and File documents:
The state laws dictate how to draft the trust. For example, in some states, the grantor must fill out the trust documents with the state probate court. Research the precise process in your state and do the needful.
Appoint a Trustee:
The grantor needs to appoint a trustee who is over 18, mentally competent, and without a criminal record. The trustee is responsible for executing the terms of the trust. In some cases, the grantor can also appoint himself as the trustee of the trust.
In this step, they need to identify all the assets for the trust. The settler must transfer assets requiring legal titles to the trustee’s name. These are assets such as real estate, cars, bank deposits, etc. In the case of assets like art and jewelry, the grantor must transfer the right to the trustee.
Go to the Bank:
The bank will set up the trust based on the recommendations mentioned in the trust’s documents.Example of Trust Account
Let us understand the working with the help of an example.
John’s parents can only invoke those funds when the kids need something. Otherwise, the money in the trust grows with every installment. Once the kids are old enough, they can use the funds as pocket money, or John can revoke the trust.Rules & Regulations of Trust Account
As the trustees bear the responsibility of trusts, they must follow a few rules.
They should maintain all accounts and funds separately. They should not mix those with their firms or other trusts.
Never use any of the trusts’ assets for personal or professional needs; unless it is for the trust’s grantor or beneficiaries.
Maintain records for all transactions from the grantor or to the beneficiaries. Keep a regular check on the balance.
Verification of the assets is a crucial step for account managers. They should not blindly trust the grantor or beneficiaries and perform verification when necessary.
The structure of trusts results in more privacy and limited liability for the asset owners.
It provides flexibility in the distribution of assets among the beneficiaries.
It significantly reduces the chances of legal hassles or court challenges.
The structure is very complicated, creating problems if there is a need for external borrowing.
In some cases, it becomes costly to establish and maintain trust.
It results in a large volume of additional paperwork.Frequently Asked Questions(FAQs) Q1. Define a trust account. Name the types of trust accounts.
A trust account is an agreement where a grantor lets a trustee manage the assets for the ultimate beneficiary of the trust account. The most common types include living, testamentary, revocable, and irrevocable trust accounts.Q2. How to open a trust account? Why do people use trust accounts?
Grantors usually create trusts to protect their assets. It ensures that the assets under the trust are allocated and managed safely for the benefit of the eventual beneficiaries.Q3. What is a trust account in a bank?
A trust account in a bank refers to a financial account held by a trust that a trustee handles. The trustees usually use those to meet incidental expenses and disseminate assets under the trust to the beneficiaries after the grantor’s death.Q4. Do trust accounts pay interest? Are they taxable?
A trust account that holds liquid funds can be called a typical bank account. So, like any other bank account, a trust account also earns interest and is paid to the trust beneficiaries.
The trust doesn’t pay any taxes for the interest income. However, the trust beneficiaries are liable to pay taxes on the income they receive from the trust. So, it means that the interests are taxable.Q5. What is the purpose of a trust account in real estate?
A trust account is considered a legal obligation in the real estate industry. It helps in managing funds and maintaining compliance with the applicable legislation.Recommended Articles
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