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TYPES OF TRUSTS (Part 3)

TRUST BY PURPOSE
The purpose of a trust is to provide someone with the benefits of certain property while, at the same time, protecting them from themselves and limiting or conditioning how they can use the property. Trusts are usually named to express the actual purpose of the trust.
TRUST TYPES COMMON TO ESTATE PLANS
A/B Trust
An A/B Trust splits into two separate trusts upon the death of the grantor. One trust is a Credit Shelter Trust. The other is a Marital Trust.  These… More

TYPES OF TRUSTS (Part 2)

TRUST CLASSIFICATIONS
All trusts do not contain the same type of property or have the same purpose. Nor are they all created in the same manner.  The  following are the major classifications of trusts.
Living Trust (“inter-vivos trust”)
A living trust becomes effective during the creator’s lifetime.  If the trust has a trustee other than the grantor, then the written trust document is called a “trust agreement”    If the grantor… More

TYPES OF TRUSTS (Part 1)

TRUST CONCEPT
A trust is an arrangement whereby one person agrees to hold property for the benefit of another.
VOCABULARY OF TRUSTS
All types of trusts have four basic components.

Someone must create the trust. This person can be named any of the following:  “grantor”, “donor,”, “settlor,” or “trustor.” All these terms are used interchangeably.

Some other person or entity must agree to hold money and/or property… More