Trust Law
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What is a trust?
Do I need one?
Those are great questions.
There are three (3) basic parties to a trust. A trust
is a relationship in which a person, called a "trustor" or
"grantor", transfers something of value, called an "asset", to
another person, called a "trustee". The trustee then manages and
controls this asset for the benefit of a third person, called a
"beneficiary." A beneficiary is the person benefiting from
the will, trust, insurance policy or other document. An asset
can be any kind of property that has value.
Trusts originally come from England when knights would go on
a crusade, they would leave their "assets" (e.g. - their castle,
horses, farm animals, and riches) in "trust" to another to watch
over them and keep the assets safe while the knight was on his
crusade. In a way, the same is true today. When you
place something in trust, you are giving the "trustee" the
charge to watch over that asset and keep it safe.
You might be asking, what are the uses of a trust?
Another excellent question.
Trusts have several uses and they can be of much benefit when
properly set up and managed. One of the uses of a trust is to
provide flexible control of assets for the benefit of minor
children. A trust set up for the benefit of minor children can
avoid the necessity of further legal proceedings, such as the
appointment of a conservator. A conservator is someone who is
appointed by the court to control the assets of minor children.
Conservators are restricted by law and must be bonded and file
annual accountings with the probate court.
Trusts can also be used to hold real estate; to keep assets
private and out of the court systems in lieu of a probate.
Privacy has long been a reason why people use trusts.
Estate planning is another use of trusts. Here is a small
list of trusts that are frequently used:
Credit Shelter Trust: The Credit Shelter Trust is
designed to minimize federal estate taxes. It is essentially a
trust for the benefit of the family. It restricts access by the
surviving spouse and uses the $1,000,000 exemption of the first
spouse to die.
Irrevocable Trust: An Irrevocable Trust is a trust where the
terms of which cannot be changed or terminated.
Q-tip Trust: Q-tip stands for Qualified Terminable Interest
Property. This is a trust established for the benefit of the
surviving spouse and no one else. It is designed to take
advantage of the marital deduction and minimize federal estate
taxes
There are other options available to you, if you or a member of your family needs the services of an experienced
trust attorney, please contact Jeremy Eveland at the The Law Offices of Jeremy D.
Eveland, PLLC. I am committed to helping you with your legal needs
.
