There are several major details that the Grantor must include in the Trust Agreement to accomplish this task. The Grantor should note whether they are married and, if so, the name of their spouse, as well as whether they have any children.
For the purposes of a Trust Agreement, children include both those that were born to the Grantor as well as those that have been legally adopted by the Grantor. This Agreement also includes a provision so that the Grantor's future children, if any, are covered by the terms of this Trust Agreement. All children should be included in the family description, even if the Grantor does not plan to leave them anything in the Trust. This way, a Judge can be sure that the Grantor meant to disinherit a child and did not mistakenly overlook them in this Agreement.
The Grantor must appoint a Trustee in the Trust Agreement. The Trustee is in charge of managing the Trust assets, making payments of the Trust income to the Grantor, and making sure that the people the Grantor has named as beneficiaries get the portion of the Trust described by the Grantor after the Grantor's death. The main requirements of a Trustee are that they are an adult 18 years or older and that they have not been convicted of a felony.
Often, a Grantor serves as their own initial Trustee and then names a successor Trustee to assume the role once the Grantor becomes disabled, no longer wishes to manage the Trust, or dies. The Grantor should describe in as much detail as possible the assets they plan to transfer into the Trust.
This description should include details such addresses of real estate, visual descriptions of personal property, and the value of any and all assets included in the Trust. The Grantor should then prepare to do the work of transferring these assets using forms such as a Bill of Transfer for the transfer of any tangible personal property, a Trust Letter to a Bank for the transfer of the contents of a bank account, broker forms for the transfer of stocks and bonds, and a Change of Beneficiary document for the transfer of a life insurance policy.
One of the most important parts of a Trust is the Grantor naming their beneficiaries. The beneficiaries are the people who will inherit the contents of the Grantor's Trust after the Grantor's death. The Grantor may make specific gifts in their Trust Agreement, naming specific people to inherit specific possessions , property, or cash assets.
However, a trust is intended to secure assets and control property, whereas a Living Will is a document used to spell out your medical wishes for your family and health care representatives if you suddenly become incapacitated. All Rights Reserved. We provide information and software, and you are responsible for appropriately using this material. Your use of this site is subject to our Terms of Use. Use of this site is subject to our Terms of Use. We provide information and software and you are responsible for appropriately using this material.
Note: Your initial answers are saved automatically when you preview your document. This screen can be used to save additional copies of your answers. Canada United Kingdom Australia 0? Create Free Account. What are you looking for? JavaScript Required You are reading this message because your browser either does not support JavaScript or has it disabled. What type of property do you want to put in your Living Trust?
Real estate. Financial accounts. Business ownership. Personal property. A Revocable Living Trust also allows for the Grantor to amend or revoke the Trust at any time by providing to the Trustee appropriate written amendments or restatements signed by the Grantor. During the Grantor's lifetime, they will receive payments of the net income of the Trust at pre-determined intervals.
Once the Grantor dies, the Trust designates who will receive the assets from the Trust, similar to a Will. These distributions can be specific gifts to individual beneficiaries, such as an amount of money to charity or a favorite piece of jewelry to a child. The distributions can also be the residue, or the remaining assets not given away as specific gifts, such as all of the Grantor's remaining personal property included in the Trust. The Trustee is responsible for administrating the Trust and making the distributions as described in the Trust Agreement.
Though a Living Trust is similar to a Will, there are several key differences. Many people find a Living Trust to be a preferable alternative to a Will because of three main advantages:. Privacy - Living Trusts are more private than Wills because, under state law, a Will is admitted to a court procedure known as probate where the court determines the validity of the Will, deals with potential challenges, and distributes the assets to beneficiaries.
As a result, the contents of the Will become part of the publically searchable and accessible court records. By contrast, a Living Trust is generally administrated by the Trustee without court interference or involvement, and so does not become a part of public record. Lower cost - Living Trusts usually cost less to maintain and administrate. When a Will goes through probate, it is often tied up in the court process for as long as three years and involves court costs, lawyer fees, executor fees, and other assorted expenses.
Since a Trust is generally administrated without court involvement, using a Trust can help someone avoid incurring the expenses associated with a Will. Property management - A Living Trust allows a Grantor to name a person or organization to manage the assets they choose to include in the Trust if they become unable to do so or no longer wish to do it themselves.
In this way, a Living Trust can be used as an alternative to a conservatorship or a guardianship. Use this document to explain how the Grantor's Trust should be managed while they are alive and then distributed among the people they name once they die. There are several major details that the Grantor must include in the Trust Agreement to accomplish this task.
The Grantor should note whether they are married and, if so, the name of their spouse, as well as whether they have any children. For the purposes of a Trust Agreement, children include both those that were born to the Grantor as well as those that have been legally adopted by the Grantor.
The grantor legally forfeits ownership of the assets, and they are moved out of their taxable estate. You can also use our document builder to create a document customized to your needs by answering some questions about how you want your trust to be set up. The most common reason for creating a trust is to manage and distribute your assets, but you can include any other lawful reason you choose.
Indicate who will serve as the initial trustee s and the successor trustee s. Often, the grantor will choose themself as the initial trustee so they can continue to manage the trust assets during their lifetime.
Decide who will receive assets from your trust, whether in the form of a specific gift or as a percentage of the trust. Beneficiaries can be either people or organizations such as a charity.
By transferring the ownership of these items to your trust, they can avoid probate and transfer directly to the beneficiaries you designate. The main downside of a living trust is the time and effort it takes to create your trust and transfer your assets into it. That being said, creating a trust takes the burden of managing your estate after your death off of your family and loved ones.
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