Random Feeds
Couple held after infants' bodies found
French national police Tuesday detained a couple after the [...]
Recent Headlines
NM hires law firm to pursue investment lawsuits
The State Investment Council has hired a law firm to [...]
Sheppard, Mullin, Richter & Hampton LLP has added three partners
Sheppard, Mullin, Richter & Hampton LLP has added [...]
Conn. man found incompetent in '92 is held again
A 76-year-old Connecticut man has been arrested after [...]
Recent Updates:
Trusts
Probate ♦ Guardianship ♦ Estate Planning ♦ Wills ♦ Trusts ♦ Durable Power of Attorney ♦ Health Care Surrogacy ♦ Living Wills
When people or organizations manage property or money for another person's benefit, it is called a trust. Trusts are important aspects of estate planning because the arrangement not only leaves money and property to another person, but it is then managed by a trusted person in a specific way. The arrangement can be a living trust, a family trust, or specified for another beneficiary. In any situation, the trust lawyers at Coye Law Firm are dedicated to providing you with options and advice when setting up a trust.
Creation and Parts of a Trust
Trusts can be created separately or in a will. They are created by people who have sums of money that they wish to be used in a certain way after their death. For example, instead of leaving a large amount of money to a charity, creating a trust can ensure that the money be given to the charity in monthly or yearly payments. A trust must clearly identify intention, subject matter (money or property), and those who will benefit. The following paragraphs outline who is involved in a trust and what their duties are.
Trustees
The person who is put in charge of managing the trust is called the "trustee." This person is held to a high standard through the law. They have many duties, including:
- to administer the trust in the interest of the beneficiary
- to deal honestly in the administration of the trust
- to act impartially if there is more than one beneficiary in the trust
- to control and protect the property in the trust, if any
The trustee should be someone who is trustworthy and has the best interest of the beneficiary at heart. Some trusts are created for children in the event of a parent's death, and if large sums of money are left to be managed, it is crucial that they are handled responsibly. Trust attorneys can help you decide who to appoint as a trustee.
Beneficiaries
The person who is receiving or will receive the benefit of the trust is called the "beneficiary." Beneficiaries can be children, charities, or any other party that a person deems worthy of their money or property. Family trusts often designate children are beneficiaries. The language used to designate a beneficiary is important to consider. For example, parents may want their child to be given property held in the trust upon their 25th birthday or graduation from college. If these rules are not outlined, then the trustee might not execute the trust in the intended way.
Testators
The creator of the trust is called the "testator." This person may want to create a trust for the reasons outlined above or many others. Creating a trust also gives you:
- "spendthrift protection" in case the beneficiary wants to spend all of the money at once
- the opportunity to plan for when and what type of taxes will be incurred on your money
- privacy; the terms of a will are public once filed with a court, but trusts are not.
Trusts can be a beneficial and sometimes integral part of estate planning. Speaking with an estate planning lawyer experienced in this field can help you answer questions regarding your intentions that you might not have thought of before. Consult the trust lawyer team at the Coye Law Firm to create a trust that will protect and distribute your assets according to your wishes. Contact us today.
