A living trust is another name for a revocable trust, that is a trust established by the grantor who funds the trust with assets and which allows the grantor the option to modify, amend and/or revoke the trust before incapacity or death.
Grantor, Trustee, Beneficiary
There are three main players in a living trust: the grantor (a.k.a. the settlor), the trustee and the beneficiary.
The grantor establishes the trust and contributes assets or property to the trust. The grantor also designates a trustee to manage and distribute assets according to the grantor’s wishes. The grantor may also be the trustee.
The trustee may be an individual or a professional trust management company. The trust itself owns the property in the trust.
The beneficiary is the individual, organization, or another trust, who receives property from the trust. The beneficiaries “benefit” from the trust assets. The trustee makes distributions of trust assets to the beneficiaries of the trust according to the trust guidelines. It is possible for the grantor to also be a beneficiary and to receive distributions from the trustee.
Getting Legal Help
Experienced Estate Planning Attorney Elga Goodman can help you better understand all your options and then help you decide what is right for your individual family’s needs. Call us today at 561.935.9763 and toll free 855.873.7268 to learn more.
Posted in: Estate Planning, New York Estate Planning