What Is a Trust?
A Trust is something that many people have heard of before but perhaps don’t really know or understand what it is. The first thing to realize about a Trust is that it is a legal agreement between three different parties. The first is the Trust maker, which is the individual who creates the Trust agreement. The second is the trustee, which is the person who is responsible for managing the property or the funds. The third is the beneficiary or beneficiaries, who are the people that receive the benefits of the property or assets of the Trust. So, in short, you have the Trust maker who transfers ownership of assets to the Trust and the trustee. The trustee then manages these assets for the benefit of the beneficiaries in the Trust.
Types of Trust
No matter what type of Trust it is, they are all either revocable or irrevocable trust. This means that the beneficiary of the Trust can have their privileges revoked if it’s a Revocable Trust or they cannot be revoked if it’s in your Revocable Trust. But no matter what type of Trust, whether revocable in your revocable, there are several Trusts that can be tailored for a specific purpose. For example, the Special Needs Trust is set up to provide for a disabled or handicapped beneficiary that won’t compromise his or her entitlement to supplemental security income or government benefits. The Spendthrift Trust actually gives the trustee the power to determine how and when distributions can be made to the beneficiaries in a Trust; this is really a good Trust for those who are not financially responsible. These are just a couple; there are several other Trusts as well.
Estate Planning Attorney in Wylie, Texas
A Trust is a precious asset when planning your estate. A Trust is a tool that should be utilized and not disregarded. Unfortunately, many people do not take advantage of the trust because they see the whole process as being too overwhelming. It’s for that reason that we advise you speak with an attorney that specializes in Estate Planning and can make the entire process of establishing a Trust relatively painless and easy. So, if you are ready to set up a Trust, then please don’t delay and give our offices a call today.
Information, Not Legal Advice. We provide the information on this website as a public service. The legal landscape is constantly changing and being modified by state law and case law. As a result, we cannot promise that this information is always up-to-date and reflective of the most current jurisprudence.
We do not intend this information to be legal advice. By providing this information, we are not acting as your lawyer. If you need legal advice, you should contact a lawyer through our number (972) 442-8326 or contact another attorney of your choosing.