There are different types of trusts for different needs, but they all function in the same way.
Find out more about Living Wills
Excellent
by Michelle Kaminsky, Esq.
Writer and editor Michelle earned a Juris Doctor degree from Temple University's Beasley School of Law in Philad...
Updated on: July 18, 2024 · 2 min read
A trust account is a legal arrangement through which funds or assets are held by a third party (the trustee) for the benefit of another party (the beneficiary). The beneficiary may be an individual or a group. The creator of the trust is known as a grantor or settlor.
Here are some of the main features of a trust:
There are several types of trusts that serve different purposes, although they all function effectively the same.
State law governs the types of trusts available in your jurisdiction.
Once you decide on the type of trust account that is right for you, you will need to consider three main issues:
If you name yourself as a trustee, you should also choose an alternate trustee in case of your incapacitation or death. Also, the transfer of assets can get a bit complicated, depending on whether the property has a legal title or not, so you should be extremely careful that your trust is properly funded.
Once you have these decisions made, all that's left is the required paperwork and filing, which varies by state. Although no jurisdiction requires an attorney's involvement in the creation and management of trust accounts, seeking legal guidance is still a good idea, as the process can be complex.
You may also like
Why Do I Need to Conduct a Trademark Search?
By knowing what other trademarks are out there, you will understand if there is room for the mark that you want to protect. It is better to find out early, so you can find a mark that will be easier to protect.
July 31, 2024 · 4min read
In estate planning, two primary instruments to transfer property come to mind: the first is a will, the second is a trust. A will is easy to understand; you say what someone gets, they get it. The concept behind a trust is somewhat more complex, and you need trustees. So what is a trustee, and what function does that person serve?
April 22, 2024 · 3min read
How to Get an LLC and Start a Limited Liability Company
Considering an LLC for your business? The application process isn't complicated, but to apply for an LLC, you'll have to do some homework first.
October 3, 2024 · 11min read