WILLS AND TRUSTS

Terms You Need to Know Before Having a Trust Written Up

Trusts are excellent estate planning instruments when their circumstances are set up properly. However, most people have scant knowledge of trusts and believe their estate has no need for one. In most cases, creating a trust may be well worth considering under the right circumstances, including:

  • If your personal net worth totals at least $100,000
  • You have considerable real estate assets
  • You have highly specific ideas about when and in what ways you want your estate to be allocated when you pass

When reading over a trust document, it can seem like it’s in a foreign language. This is often due to the profusion of obscure words and complex concepts. If you want to decide whether a trust is right for your situation and lack knowledge of the common legal verbiage involved, the following is a brief introduction to some key terms used to write trusts.

Grantor

This is the person or group that assigns the property in a trust to the beneficiaries. The grantor is also commonly called the “trustor” or the “settler”.

Trustee

The trustee is the individual, corporation, or combination of the two that manages a trust’s property. They must do this in line with the trust’s provisions. Trusts can simultaneously have several trustees. Plus, they often contain specific conditions for choosing successors to step in when an initial trustee quits, is eliminated or passes away.

Beneficiary

The beneficiary is the person or group that gains benefit from the trust. In cases with several beneficiaries, it is not required that they all have identical interests in the trust. In fact, a beneficiary does not even need to have been born yet at the time of the trust’s creation.

Corpus

The trust’s corpus, or principal, is the property that goes into the trust either at the time the text is generated or at some point after. The income produced within the trust that is not allocated may become part of the corpus, according to the stipulations of the trust. The corpus can include capital, stocks, real estate, or other property.

Situs

A trust’s situs establishes the precise laws that the trust must follow. Typically, the situs relates to the physical location of the grantor or the greater part of the corpus. The situs is a key factor to consider because it decides the laws, regulations, and taxes applicable to the trust.

If you wish to consult with a knowledgeable attorney about whether a trust is right for you, get in touch with Bell & Shaw Law, LLC today. We would love to talk about your situation and help make the process easier. Our highly experienced team can help you produce a trust that is set up properly plus meets all of your individual needs.

Bell Shah Law, LLC

Recent Posts

Can You Transfer Ownership of a House in a Will?

One major goal of creating a will is to transfer property to individuals who survive…

3 days ago

You Need Professional Help with Business License Issues

The US is home to countless county, city, township, and special-district governmental bodies, each with…

1 week ago

What Goes Into a Remote Closing and Could It Help You?

When unable to attend an in-person for the purpose of buying a home, you can…

4 weeks ago

Important Notes When Creating a Severance Package

On the topic of worker benefits, employers are understandably more interested in discussing the advantages…

1 month ago

Does Your Business Need a Non-Compete Agreement?

Non-compete agreements, also known as non-compete clauses (NCCs), are contracts that forbid employees from working…

2 months ago

Understanding Bylaws before Buying a New House

Purchasing a home in a development with a homeowners association (HOA) can look like a…

2 months ago