Trusts

A trust holds assets to be managed by a trustee for the benefit of the beneficiaries. Some common types of trust are a revocable trust (also called a living trust), irrevocable trust and testamentary trust. Before discussing the differences for these trusts and how they are used, it is helpful to understand the terminology. The individual who creates and funds the trust is called the grantor or settlor. The trustee is the person or financial entity who manages the assets placed in the trust by the grantor. The trust usually also names a successor trustee in case the original trustee is unable or unwilling to continue to act as trustee. The beneficiaries are the individuals or entities named to receive the assets from the trust…