Simply put, in a trust, one person legally holds assets or property and manages them to benefit another person.
A trust is a legal container for holding assets, which are usually money or property. Often this property is real estate, but it can also be gold, expensive jewelry, stocks, or securities.
As a container, a trust is not worth anything unless you take the additional step of funding it. Some people set up a trust, pay the fees, and never transfer any assets into it. Consequently, it is useless.
However, a funded trust can do a lot for you and your heirs. This is because a living trust is more than just a container. It specifies situations for when it can be opened and who can use it. A trust is a legal container governed by rules.
If you are creating the trust, you make the rules. The person you appoint as the trustee enforces them for you.
You can set up a living trust to become active once a certain condition is met and “tag” it for a specific purpose, such as a charity or college. However, fully understanding how a living trust works requires a discussion of the roles needed for it to function.
Because the names of these roles are all different, it is easy to assume that they represent different people; however, this is not always the case. It is common for the creator of the trust to name himself for all three roles.
There are other issues to consider too, such as the type of trust you want; the type largely determines how and when the assets are distributed. A living trust, for example, becomes active while its creator, or settler, is still living. A testamentary trust becomes active only after probate.
If you are struggling to find trust options that are right for you, call the Law Office of Richard Nevins immediately and set up an appointment. A qualified attorney with an extensive background in trust law will advise you and draft a document suited to your needs. The more informed you are about your options, the more likely you will be to make decisions that best serve your interests.