The most basic facets of estate planning often include a will and a trust. Both can be helpful for different reasons, but if you’re not familiar with how a trust fits into your general estate plan, consider talking with your estate planning lawyer in Massachusetts to discuss how this might benefit you.
For the purposes of simplicity, a trust is a legal arrangement holding assets for a beneficiary. An individual or entity known as the trustee is designated to manage these assets according to the terms outlined in the trust documents.
As the creator of the trust, you – as Grantor – can determine how the trustee should manage these assets and under what terms they should be distributed. The terms of your trust are somewhat flexible and can be aligned with how you want the trustee to handle it as well as the individual needs of your beneficiaries.
There are several different parties included in a trust. These include:
- The beneficiary or the person entitled to receive part or all of the property inside the trust.
- The trustee- the company or the person that holds legal title to the assets inside the trust and manages them for others.
- The grantor or the person creating the trust, who may also be referred to as the trustor or the settlor.
The two primary types of trusts are irrevocable and revocable. An irrevocable trust may be created during the grantor’s lifetime or upon his or her death. A revocable trust is created during a grantor’s lifetime and can be changed or revoked at any time. Do you think a trust belongs in your estate plan? If so, talk to an experienced Massachusetts lawyer today about next steps.