Understanding Trusts
A trust is a legal arrangement where a trustor (also known as a settlor) transfers ownership of assets to a trustee. The trustee manages and invests the trust assets and distributes them to beneficiaries according to the terms of the trust.
Trusts are categorized based on when they are created:
- Living trusts – Created during the trustor’s lifetime (also called inter vivos trusts). They are usually revocable and amendable while the trustor is alive but become irrevocable upon death.
- Testamentary trusts – Created upon death through a will. They are irrevocable and managed according to the terms established in the will.
Types of Trusts
Trusts allow for the management of your assets during your lifetime and provide for direct distribution to your chosen beneficiaries upon your death, avoiding the time, expense, and publicity of probate. THK Law’s attorneys are experienced in preparing a wide range of trusts, including:
- Dynasty/generation-skipping trust (GST)
- Charitable or charitable remainder trust (CRT)
- Special needs trust
- Credit shelter trust
- Qualified personal residence trust (QPRT)
- Irrevocable life insurance trust (ILIT)
- Qualified terminable interest property trust (QTIP)
- Grantor-retained annuity trust (GRAT), Unitrust (GRUT), or income trust (GRIT)
- Supplemental needs trust
- Intentionally defective grantor trust
- Unitrust
There are many misconceptions about the uses and purposes of trusts.
Call 574.232.3538 to make an appointment and get the answers you need to make informed decisions regarding your future and that of your loved ones.
