What is a trust?
A Trust is a well-recognized type of legal entity which is used to hold legal title to property for the benefit of one or more persons. The person creating the Trust is often known as the Trust Creator or Grantor. The person or institution holding legal title to the property is called the Trustee. The persons who are intended to benefit from the Trust are known as Beneficiaries.
Trust is a fiduciary relationship between the Trustee and the Trust’s beneficiaries. The Trustee holds legal title to property, referred to as the “principal,” under a duty to manage, invest, safeguard and administer the property and any income from the property for the benefit of the Beneficiaries. The individual who creates a Trust is called the Settler. The Settler picks the Trustee and gives property to the Trust. A Trust created while the Settlor is alive is called an Inter-vivos Trust. A Trust created by the Settlor’s Will after the Settlor’s death is called a Testamentary Trust. An Irrevocable Trust is a Trust the Settlor cannot terminate or alter, and a Revocable Trust is just the opposite.
A trust is a legal relationship in which one person (or qualified trust company) (trustee) holds property for the benefit of another (beneficiary). The property can be any kind of real or personal property–money, real estate, stocks, bonds, collections, business interests, personal possessions and automobiles. It is often established by one person for the benefit himself or of another. In those cases, it generally involves at least three people: the grantor (the person who creates the trust, also known as the settlor or donor), the trustee (who holds and manages the property for the benefit of the grantor and others), and one or more beneficiaries (who are entitled to the benefits). It may be helpful to think of a trust as a contract between the grantor and the trustee. The grantor makes certain property available to the trustee, for certain purposes. The trustee (who often receives a fee) agrees to manage the property in the way specified. Putting property in trust transfers it from
A trust is the holding of property and the equitable management of that property by one person (a trustee) for another person (a beneficiary). The person who transfers property into a trust is called a grantor. A Living Trust is called a Living Trust simply because it is created while you are alive. In most Living Trusts the grantors (Husband and Wife) are also the trustees. Almost anything can be placed in a trust: bank accounts, stocks, bonds, real estate, personal property, and life insurance. Once the trust is established, assets can be placed into the trust by simply changing the name or title of the asset. If constructed properly the grantor can still maintain full control of the assets. • Living Trusts avoid probate. Because a trust is recognized as a separate legal entity, distributions are made by a Trustee to named beneficiaries without any court involvement. • Keeps the details of the estate private. • Gives the grantors (Husband and Wife) full control of their assets while
