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How do the various parties become involved with a trust?

On Behalf of | Nov 24, 2021 | wills and trusts | 0 comments

Individuals often set up trusts so that their heirs will not need to go through the probate court to receive their assets. As noted by NerdWallet, by creating a trust, you become its grantor and can transfer your assets into it. If you own real estate, for example, you may transfer its ownership to your trust rather than to a particular individual.

As a grantor, you legally give permission to your trust to hold your assets and properties. You also choose the individual who will manage your trust. In addition to your heirs, you may name other individuals in your trust as its beneficiaries. You could also name charitable organizations.

How does a trust treat ownership of assets?

A distinct advantage of creating a trust is maintaining control over the management of your property after death. You may protect your assets by providing your chosen trustee with written instructions outlining your wishes for their preservation or use.

A trust requires a trustee to administer your estate, but you can choose and authorize either an individual or an organization to take on the role. If you envision your property producing income, for instance, your named trustee honors your directions for generating and distributing those proceeds.

How may a grantor and beneficiaries gain from a trust?

With a trust, your named beneficiaries avoid probate court. They may also access your assets sooner and do so privately. If you create a living trust and name yourself as a beneficiary, a trustee can also manage your assets during your lifetime.

The advantages of a trust include control over your assets after you die and preparing for a possible debilitating illness. If or when you can no longer handle your affairs on your own, your chosen trustee will follow the instructions you provided.