![]() Trusts are used for many purposes including the management of assets for minors, elderly persons or handicapped persons, as well as protecting assets from lawsuits and other adverse actions. Extreme care should be taken to design the trust so that it accomplishes the objectives and goals of the individual (grantor) establishing the trust. The trust instrument also directs paying out of trust income to beneficiaries, lists instructions as to timing of final distribution, and trust termination. The trust instrument may specify the powers, responsibilities and latitude of the trustee. A person can be very flexible in the design of the trust. The trust instrument is a complete set of guidelines for the operation of the trust. Consider all contingencies that could arise regarding you or the beneficiaries, and plan accordingly. Its creation and content should be carefully thought out. The trust instrument is an important document. They can receive annual earnings distributions and eventually will receive the entire trust principal ("corpus") when the trust is terminated. The beneficiaries are the people for whom the property is managed. This trustee should be someone you trust to serve in that capacity and should be astute in business matters and have high ethics. This trustee can be an individual or an institution such as a bank trust department. In your trust, you can name a successor or disability trustee who would take over your trust management in the event you become disabled or incapacitated. As trustee, you hold and manage the property in the trust in accordance with the instructions, rules and guidelines you write into the trust instrument. Grantor, trustee and beneficiariesĪs grantor of the trust, you may name yourself as trustee and beneficiary of the trust. This is referred to as “funding the trust” and is a critical part of the process. Transferring assets to a trust is a formal process and titled assets must be changed from individual ownership to trust ownership. There are numerous types of trusts that could be utilized in a farm transition plan.Īny type of property such as cash, personal property or real estate, business entity ownership shares, etc. ![]() It can be custom designed for your situation.Any type of property can go in a trust.Think of a trust as a bucket into which you place your assets for protection. A trust can provide a means to hold and manage your property. ![]()
0 Comments
Leave a Reply. |
Details
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |