What Is a Trust?
A trust is a legal arrangement between two parties: the trustee and the trustor (sometimes also called the settlor or the grantor). The trustor is the person who establishes the trust and transfers assets into it. The trustee is the person or entity responsible for managing those assets according to the wishes of the trustor.
Beneficiaries
The beneficiaries may be your spouse, children, other family members, close friends, or a charitable organization.
What Can You put in a Trust?
The types of assets you may transfer to a trust include:
Real property, including homes, land or investment real estate
Deposit accounts held at banks and credit unions
Investments, including stocks, bonds and money market accounts
Life insurance policies
Business interests and assets
Collectibles and antiques
instructions on who is to take care of your minor or disabled children after your death.
Funding a trust occurs when you transfer assets into the trust and under the control of the trustee.
What are the different types of Trusts?
Revocable Trusts
Irrevocable Trust
Asset Protection Trust
Marital Trusts (“A” Trust) A marital trust (or “A” trust) can be established by one spouse for the benefit of the other
TAX Bypass Trusts (“B” or Credit Shelter Trusts)
Charitable Trusts
Generation-Skipping Trust
Life Insurance Trust
Special Needs Trust
Spendthrift Trust
Testamentary Trust
Forming a trust is a great way to protect your family's assets and to make sure loved ones are secure. You may decide that the complexity required for such a trust would benefit from the advice of an estate planning lawyer or you want to learn more about trust law in your state. Get ahead of the curve and get some peace of mind for your family by calling a local estate planning attorney or a CPA attorney experienced with trusts.
If you would like to speak to an attorney to see if a trust is beneficial for you, or what type of trust you need without the $400 per hour consult fee, consider signing up for this universal Legal Service Plan.
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