A trust is a relationship between a settlor or grantor, a trustee, and the beneficiary or beneficiaries. The settlor or grantor establishes the trust and transfers assets to the trust either during the settlor’s lifetime or at the settlor’s death. The trustee manages the assets in the trust for the benefit of the beneficiary or beneficiaries. The beneficiary or beneficiaries are the persons who will ultimately receive the assets in the trust.
A trust provides the settlor with flexibility in distributing assets because a trust allows the settlor to determine when assets can be distributed from the trust and what assets can be distributed for.
There are many types of trusts – a revocable trust, a testamentary trust, a class trust, a qualified subchapter s trust, and a life insurance trust are just a few examples. Each type of trust has its own requirements and benefits.
Hoyt & Stanford is experienced in drafting many types of trusts and can help you decide what kind of trust is best for your estate planning needs.