There is a lot of confusion from the public on what a trust fund is and what is it for. In simple terms, it’s a legal agreement between three parties: the trustmaker, the trustee, and the beneficiary or beneficiaries. The trustmaker is an individual who creates the trust agreement, and is commonly referred to as a grantor or trustor. The trustee is the person or entity who is responsible for managing the property that the trustmaker transfers. Last, the beneficiaries are the people who receive the benefits of the trust fund. With Trust Administration, Crystal River residence will make sure all parties carry out their part of the trust.
What is a Living Trust?
A living trust is one that is created and goes into effect during the trust maker’s lifetime. It’s sometimes referred to as an “inter vivos” trust. Other trusts do not go into effect until after the trustmaker has died. These are known as “testamentary” trusts. A testamentary trust is typically formed by the executor of the decedent’s estate when his last will and testament names the trust as a beneficiary. The will directs that his property should be moved into the trust at his death. The trust agreement may cite other beneficiaries as well, those who will inherit from the trust after the trust-maker’s death. The two most common purposes of a revocable living trust are to plan for mental disability and to avoid probate of the assets the trustmaker funds into his trust before his death. With trust administration, Crystal River residents should know that a trust is carried out while the trustor is still alive while a will can not be acted upon until they leading party has passed away.
Are There Any Other Types of Trusts?
All living trusts are either revocable or irrevocable, but they can be designed to meet specific purposes as well within these frameworks. Irrevocable life insurance trust (ILIT), Special Needs trust, and spendthrift trusts are all different types of trusts for different scenarios and situations. When trying to create a trust, hire an attorney for trust administration. Crystal River residents are going to have everything run much smoother and in return, make you feel more at ease with your situation.
*Disclaimer: The views expressed here are those of the authors and do not necessarily represent or reflect the views of Jhonston & Sasser, P.A*