A trust can be used effectively as an instrument to avoid probate and save taxes when estate planning. It’s usually a good idea to have a trust in place if you have beneficiaries that you want to receive your assets. A trust helps them avoid probate court and keeps your assets private. |
Additionally, it’s also a good idea to have a trust in place if you have young children, special needs family members, or children who are not capable of handling and managing the assets on their own. A Trust Attorney can be very useful when you want to create a trust to protect your loved ones.
How A Trust Works.
The person who creates the trust is known as the grantor or settlor. They fund the trust by transferring some or all of their property in to the trust. While they are alive, they then act as the trustee and manage all of the assets in the trust. Once the grantor dies, a successor trustee takes over the management and distribution of the assets in a the trust.
A trust is governed by the terms under which it was created. In most states, this requires a contractual trust agreement or deed. It is possible for an individual to assume the role of more than one of these parties, and for multiple individuals to share a single role. For example, in a living trust the grantor can also be the trustee.
Will, trust, and estate law is complex and drafting a trust can be difficult. If you are looking to create a trust, it is usually best to consult with a trust attorney to ensure that you are preparing the proper kind of trust that is legally binding.
A Trustee Can Be A Person, Business or Public Body .
Trusts have existed since Roman times and have become one of the most important developments in property law.While the trustee is given legal authority to manage the trust, the trustee owes a number of fiduciary duties to the beneficiaries.
The period of time for which a trust is to operate is usually expressly prescribed in the trust instrument. If the duration of a trust is not clearly fixed, the basic rule is that a trust will last no longer than necessary for the accomplishment of its purpose. When all the beneficiaries and the settlor join in applying to the court to have the trust terminated, it will be ended even though the purposes that the settlor originally contemplated have not been accomplished.
If the settler does not join in the action, and if one or more of the purposes of the trust can still be attained by continuing the trust, the majority of U.S. courts refuse to grant a decree of termination.
Benefit of Trusts for Estate Planning.
A trust is beneficial for creators and beneficiaries alike.
You may choose to create a trust if:
You want to pass on assets without going through probate (which is required for wills)
You want to create a plan for managing personal or business assets if you become incapacitated
You want to keep aside assets to care for a dependent who has special needs
You want to establish rules or requirements that beneficiaries must meet to receive their inheritance
You want to keep assets for the care of minor children in the event that you pass away or become incapacitated
You want to reduce possible estate and gift taxes
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About Author -Jim Turner is a USA based author of Legal issues related to estate planning, will & trust , busuness law and elder law .Jim Turner does his best writing on these topics that helps users to find the best solutions to their FAQ on estate planning , probate , living trust and more about legal family issues .
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