Setting Up Trusts

Trusts are beneficial not only after death, but as an estate planning tool during your lifetime. Setting up a trust does not have to be complicated. The property owner who is creating the trust is the grantor. They transfer the ownership of their property or part of their property to a person or institution, called the trustee. The trustee is responsible for managing the property until the time comes for it to be given to the beneficiaries (those inheriting from the grantor). The trustees are usually compensated for their service and are also held responsible for any mishandling of the property.

If you would like to benefit from setting up a trust, you should speak with an attorney who has experience in probate, wills, and trusts. They can help you decide whether to create a testamentary trust or a living trust. A testamentary trust becomes effective only after the grantor has passed away. A living trust, or inter vivos trust, starts while the grantor is still alive. By using a living trust, you can help your beneficiaries avoid going through the lengthy process of probate.