A trust is used in estate planning to manage or dispose of property, either during the grantor's lifetime or after death. A trust can hold virtually any kind of property...real or personal...tangible or intangible, and can be as flexible as it needs to be to meet the estate owner's objectives.

  • Distributions from a trust can be arranged in any manner the grantor desires...in amount, frequency or for whatever purpose defined by the grantor.
    Trust beneficiaries can generally be anyone or any institution named by the grantor.

  • The trust can be designed so that it can be changed whenever the grantor deems necessary or it can be set up so it may not be changed or terminated.

  • The trust can be established while the grantor is living or at death.

Trusts are created for a variety of reasons:

  • Asset management - the grantor or beneficiaries of the trust may lack the expertise to manage a large portfolio of assets.

  • To benefit the grantor - the grantor can receive income from the trust and control its assets.

  • To benefit or protect others (minors, elderly, or incompetent persons) - trusts can be set up for the care of minor children or incompetent persons.

  • To divide property ownership among persons and provide flexibility in use of that property.

  • Federal estate or income tax purposes - trusts can contain provisions to reduce federal estate or income taxes.

  • For charitable purposes.

Trustees can generally be anyone the grantor wishes, including the grantor himself. It is not uncommon to have co-trustees. One trustee could be the grantor, or a family member, whose role is to be sure that the grantor's personal objectives are met. The other trustee could be a bank or other financial institution that would make the investment decisions on behalf of the trust beneficiaries.

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