Wills establish how your property and assets will be distributed upon your death, but what if you want to begin setting aside property and assets for loved ones while you are still alive? That is where Trusts come in. A Trust is a legal entity that may hold title to property for the benefit one or more persons. Property held in Trust may be of any type, including money, personal property and real estate. The types of Trusts and their purposes are vast, with each type meeting specific needs.
The person who creates a Trust is known as the Settlor, the Grantor or the Donor. The Trust is established according to the terms and wishes of this person and the property to be held in Trust, known as the trust’s corpus, is determined by the Settlor. The person for whose benefit the Trust property is being held for is the Beneficiary. The Beneficiary may receive distributions of the Trust’s corpus incrementally based on need, at a certain age, or in another fashion directed by the terms of the Trust. The person who agrees to hold the Trust property for the benefit of the Beneficiary is referred to as the Trustee. Trustees have a fiduciary duty to the Beneficiary as they are responsible for holding the Trust’s corpus and administering the Trust according to its terms.
There are many different types of Trusts. Some of the most commonly used Trusts include Inter Vivos Trusts, Supplemental Needs Trusts, Realty Trusts and Pet Trusts; however this list is not exclusive as many Trusts are tailored to the specific needs of the Settlor and/or the Beneficiary.
The world of Trusts can be complicated, and as such, it is best to consult an estate planning attorney to determine what type of Trust best fits your needs. To learn more please contact Attorney Kayla E. Boehlen at (413) 730-4455 or kayla@law-eb.com to discuss creating a Trust as a part of your estate planning.
Comments