If you’re beginning your estate planning, you may be considering creating a trust. This can be a great planning tool that allows you to control your assets and determine how they will be distributed after your death. Take a look at some of the information below, to better understand the use of a trust. If you have any questions, or if you’d like to create a trust, meet with an estate planning attorney.
What is a trust?
A trust is a powerful estate planning tool that many people choose to create. This legal agreement makes it possible for you to hold your assets and plan for their management and distribution.
As the trustmaker, trustor, settler, or grantor, you decide on the terms of your trust. This includes deciding how your assets will be distributed to your loved ones, the beneficiaries. You’re also able to appoint the trustee, the person who will manage your trust’s assets and affairs when you can’t through incapacity or death.
As the trustmaker, you will transfer assets into the name of your trust. The trustee will then be responsible for managing the assets and distributing to your chosen beneficiaries according to the terms that you’ve outlined.
Choosing a trustee
When choosing a trustee, you will need to make sure that he or she is responsible, honest, and reliable. Your trustee will be responsible for handling a number of affairs, and you need to make sure that he or she is capable of the job. You should carefully discuss the duties that go along with the job so that your trustee understands what is expected of him or her.
Take a look at our next blog post (part 2 of 2) to learn more about the use of a trust. If you have any questions, or if you’d like to create a trust, consult with a qualified estate planning attorney.
- How Estate Planning for a Family May Trap the Unwary Practitioner - August 31, 2022
- State Income Taxation of Social Security Benefits - August 24, 2022
- Understanding Tax Apportionment Clauses - August 17, 2022
