What is a Trust?
A trust is merely a contract, typically, a written contract, between the person who formed the trust, called the “Grantor,” and the Trustee.
A Revocable Living Trust – Also simply called a living trust, has become a widely used estate-planning tool, partly for the purpose of avoiding probate. When a Grantor sets up a “revocable living trust” for his or her benefit, he or she typically also serves as the initial Trustee. After the Grantor dies, the trust becomes irrevocable, and a named successor steps in to serve as Trustee. The successor Trustee must hold or distribute the trust property for the named beneficiaries and in accordance with the instructions set forth in the trust agreement.
Testamentary Trust – In some instances, such as when one of the beneficiaries is a minor or is disabled, it may be recommended that a client have a Testamentary Trust drafted into the will.
