COMMON QUESTIONS ABOUT TRUSTS

A trust offers benefits such as:

1. Avoiding probate for all assets properly transferred to the trust

2. Creating a flexible and efficient method to transfer your estate after death

3. Protecting against guardianship proceedings if you should become legally incompetent

4. Reducing the risk of a will contest and the expense of court challenges to your estate plan

5. Reducing or saving death taxes, depending upon the size of your estate at your death

6. Protecting the privacy of your estate plan from public scrutiny

A revocable trust is one that can be modified and/or revoked by the Grantor (creator) of the Trust at any time during their lifetime.  An irrevocable trust cannot be changed after it is created without Court or beneficiary approval.

A Trustee is the person who is managing the Trust and its assets in accordance with the Trust document.

The Grantor of a Trust is the creator of the Trust.

Funding a trust means that you are transferring the ownership of assets to your Trust or naming your trust as the beneficiary of an account or policy.  Any assets that are owned by the trust will avoid probate and be managed and distributed by the trust in accordance with the terms of the trust.

A will is a legal document that outlines how your assets will be distributed after your death. A trust, on the other hand, is a legal arrangement in which you transfer ownership of your assets to a trustee, who manages them on behalf of your beneficiaries. A trust can help you avoid probate and may offer tax benefits.Add an answer to this item.