Trusts are tools the modern American uses to best systematically plan while one is living but most importantly can be managed after death to maximize the use of assets.
A Plan is just that. Inevitably we all will face our end date to this life; hesitation to configure an estate plan can be financially and emotionally devastating. Simply by not educating ourselves on how these plans can ease the concerns of givers and heirs alike can make a difference. Get educated. Call us or schedule a time to discuss at calendly.com/grtdi.
A client, for religious beliefs, made the decision to not discuss the inevitability of her life and died Intestate, without a Will, thus her family lost assets they could have easily retained.
Grantor / Trustor / Settlor - "the Giver"
Trustee - "The Manager"
Beneficiary - "The Gift Receiver"
What Is a Trust?
A Living Trust is an agreement memorialized in writing, creating a relationship between a Trustee, the person who will eventually manage and distribute trust assets on behalf of a giver that planned and created such an agreement. "The Giver" signs a legal document, the Trust Agreement, which determines and specifies terms by which it will operate either during incapacitaion of the Giver or after the Giver's death. The agreement stipulates who will manage things after the Grantor, who serves as the original manager in most cases, then the individual who is named as successor to manage, subsequently. The Trustee has a duty to manage according to applicable statutory laws as well as the wishes of the giver without without the giver giving up control of assets while living. Measures called provisions are set out to govern such wishes.
What are the type of Trusts?
Trusts are usually classified as either revocable or irrevocable. These trusts or are established while the giver is still living, however and instrument called a testamentary trust only takes a in fact after the giver passes away. Also, the creator of the trust does so during their lifetime. Michael Jackson had this type of trust. The revocable trust, one that can be altered, amended and or revoked is the most common type of trust and offers the most flexibility. The irrevocable trust, in contrast cannot be altered or revoked by the Grand Tour after it is established except by court order in your local jurisdiction. Living trust are now used by those who have determined to leave legacy to their heirs without the confusion of state involvement. In most cases as stated above the giver of the trust is usually the Grantor and the initial trustee and beneficiary during their lifetime. Only upon the givers and capacity or death, will the successor trustee, chosen by the giver in advance Ben manages the property transfer to the trust for the benefit of the giver for the remainder of the giver's life, and then eventually distributes the assets in the way the giver desires to his or her beneficiaries following the giver's death.
Trust customary rules
Usually, trusts are designed to be utilized in a flexible manner. This is state plan tool can accomplish multiple strategy. They are not generic application but a customized approach that reflects familial attributes. as each family is different the giver, who has characteristics assessed by family member can devise a plan to meet the strengths and shortcomings of the members with which he would like to provide gift toward.
We live in a time of blended families, substance abuse, digital assets, desires for minor children, the care for an elder parent and even rules that apply to maintain the child with special needs. Medi-cal planning, college planning and/or spendthrift planning, which is the management of distribution intervals for beneficiaries that may need extra attention can be included in the provisions necessary to provide comfort to the giver.
It is vital that each and every one of us gathers the information needed to make such decisions that best benefits us and could preserve our legacy for generations to come. If you would like to gather a better understanding please feel free to reach out for a general consultation.
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