What is a Trust and Do I Need One?

A Trust document creates a relationship by which one person (the “Trustee”) manages property for the benefit of another person (the “Beneficiary”). There can be multiple Trustees and Beneficiaries of a Trust, depending on the wishes of the person who is creating the Trust (the “Grantor” or “Settlor”).

For many individuals, including those with minor children, a Trust may be the most efficient way to manage and distribute property.

When a Trust is created, the Trustee appointed in the Trust document has legal title to the property that has been transferred into the Trust. The Trustee then decides when, and for what purpose, distributions of property are to be made to the Beneficiary. For example, a Trustee might make a distribution to a Beneficiary to pay for the expenses of attending college. The Trustee might also make a distribution that is predetermined by the Trust, such as distributing part or all of the property in the Trust to the Beneficiary when he reaches a certain age.

The Leger Law Group will explain the various duties for those involved with the Trust and will assist you in deciding who the best family member, friend, or professional is for the role of Trustee. Our experienced estate planning attorney, Siobhan Leger, can also help you develop a detailed and comprehensive plan for how funds in the Trust should be used.

 

Request a free consultation at (225) 522-4996 today!