One of the most common trusts is called a living or revocable trust. It allows you to place assets in a trust while you are alive, with control of the trust transferred after you die to beneficiaries that you have designated. You might consider creating a living trust for one of several ...
Trust beneficiaries who have been given vested rights usually have fixed interests in the trust assets. For instance, a trust may grant Suzy the right to live on Blackacre for the remainder of her life. Suzy would have a vested right to live on Blackacre, which would end when she dies. S...
Primarily used to hold lifetime gifts for the beneficiaries and to receive assets following a grantor’s death The grantor: Generally cannot change the trust in any meaningful way Gives up ownership and control of the trust assets (although may retain some control through the terms established in...
One example of an account in trust is aUniform Gifts to Minors Act (UGMA)account. This type of account in trust created allows minors to legally own the assets held in these accounts. However, they can't have access to the account's principal and income until they reach legal age. This...
Assets that pass through probate become part of the public record, so bypassing probate can be beneficial if you prefer to keep the details of the trust private. With a revocable trust, the grantor can change the beneficiaries and assets as long as they’re alive and physically and mentally ...
individual's assets are provided as a trust for the individual's use and benefit during their lifetime. A trustee is named when the trust is established; this person is in charge of handling the affairs of the trust and transferring the assets to the beneficiaries at the time of the ...
Atrustis a special relationship betweentrustors,trusteesandbeneficiaries. The trustor gives the trustee the fiduciary right to handle all asset, property, and estate issues for the beneficiary's benefit. Asfiduciaries, trustees have the authority to act on behalf of and represent the trustor in matt...
Asset protection.Because you no longer legally own the assets in an irrevocable trust, they have a layer of protection from claims by creditors and lawsuits. Cons of irrevocable trusts Inflexibility.Once established, the terms of an irrevocable trust can’t be changed. The beneficiaries named in ...
An example of a trust would be if a grantor placed $300,000 in a trust for the benefit of their grandchildren. The trustee would be responsible for managing the assets and distributing them to the beneficiaries (the grandchildren) when they reach a certain age. The terms of the trust would...
A named beneficiary refers to an individual, decreed by a written legal document, who is entitled to collect assets from a trust, insurance policy, pension plan account, or IRA. There are various types of beneficiaries, such as primary beneficiaries who stand first in line to receive benefits....