What is a trust?
A. A trust is a fiduciary relationship relating to property. It subjects the person holding property to equitable duties and requires that the assets be dealt with only in the interest of the beneficiary. Under certain circumstances, trusts may be created orally, although generally trusts must be established in writing. The person who creates a trust is sometimes called the “grantor” or the “trustor”. A trust may arise by virtue of an agreement or declaration established by the creator during his or her lifetime, or it may arise under the terms of a person’s last will and testament. If it arises under a will, it is called a testamentary trust. Some states require that trusts be registered, that is, that the written document creating the trust be filed in a public office. Indiana does not have such a requirement. Although, generally, a trust must be “funded” in order to be valid, a trust may certainly be created presently even though property may not be transferred into the trust until
A trust is a useful device to manage property. This could be land, stocks, bonds, cash, etc. Of all the tools of estate planning, it is probably the least understood and appreciated. You may do an excellent job of managing your assets when you are active and alert. When your health fails you may need assistance. A trust can provide for others to step in and assist with, or fully assume, the management of your assets should you become incapable of handling your affairs. It is a flexible and practical tool that can be used to carry out your objectives. A trust is an instrument through which the owner (the settlor or grantor) transfers property to a custodian, called the trustee. The trustee manages the property for someone named in the instrument as the beneficiary. The trustee may be an individual, or an institution, such as the trust department of a bank. The beneficiary may receive current income or future income or principal. The same or a different beneficiary may receive the remain
