Most people understand that the foundation of many estate plans is a Last Will and Testament (commonly referred to as, simply, a Will). This estate-planning document can leave certain assets to specific beneficiaries, name successor guardians for your minor children, and accomplish other things. Besides a Will, one of the documents most commonly used in estate planning is a trust. There are many types of trusts, but what all have in common is the creation of a three-party relationship.
These three parties are the trustor (sometimes called settlor or grantor), trustee, and beneficiary. The creator of the trust places assets and property within the trust to fund it, while a successor trustee is designated as the party responsible for handling the trust’s assets when certain conditions are met (such as when the trustor passes away or loses mental capacity). This successor trustee will then distribute the assets to the beneficiary as outlined in the trust’s instructions.
If you create a trust to be included in your estate plan, you and your family will realize certain benefits. Three such benefits are:
A trust can be quite useful when you are putting together your estate plan. It provides you and your loved ones a sense of financial security that cannot necessarily be accomplished by a Will by putting certain assets in one bucket that can then be managed according to the trustor’s wishes.
The best way to know whether or not you would benefit from placing your assets in a trust is by conferring with a competent estate-planning attorney. Call Velazquez Consumer Law, LLC at 630-576-9030 to receive a complimentary case evaluation today.
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