KNOWING WHAT A LIVING TRUST IS
Defining a Living Trust
Living Trust is a type of document that certifies the transfer of grantor’s assets and properties in the event of his death. A grantor is the owner or creator of a Living Trust. Living Trust is not synonymous to Living will as oftentimes, these terms are used interchangeably. Living will describes the type of medical treatment a person wants to receive when he or she becomes unconscious or incapacitated.
What is a Living Trust Trustee?
In a Living Trust, a person called trustee takes in charge with the transfer of ownership of assets and properties. He or she is also in-charge of its distribution, as wished by the grantor. A trustee can be a close friend, relative, attorney or a bank. Before the grantor’s death, assets and properties must have transferred out of the owner’s name. Otherwise, the state will disseminate the properties and will also look for guardians, in case the grantor has children. A trustee’s role takes effect in the event of the grantor’s death. Furthermore, to avoid fraud on Living Trusts, a successor trustee may be named. A successor trustee guarantees that the trust is steered and distributed precisely among its beneficiaries. In addition, a trustee never gets any benefits unless stated in the trust document.
What is a Revocable Living Trust?
Living Trust must not be confused with Revocable Living Trust. Revocable Living Trust is a trust that can be revoked or cancelled by the grantor (creator of the trust). Divorce is one of the major reasons of Living Trust’s revocation, which nowadays can be filed online (Divorce Online). It is a trust usually formed to distribute assets before the death of the grantor. Through this trust, the grantor warrants that his or her assets are transferred and distributed smoothly and quickly.
Living Trust is a type of document that certifies the transfer of grantor’s assets and properties in the event of his death. A grantor is the owner or creator of a Living Trust. Living Trust is not synonymous to Living will as oftentimes, these terms are used interchangeably. Living will describes the type of medical treatment a person wants to receive when he or she becomes unconscious or incapacitated.
What is a Living Trust Trustee?
In a Living Trust, a person called trustee takes in charge with the transfer of ownership of assets and properties. He or she is also in-charge of its distribution, as wished by the grantor. A trustee can be a close friend, relative, attorney or a bank. Before the grantor’s death, assets and properties must have transferred out of the owner’s name. Otherwise, the state will disseminate the properties and will also look for guardians, in case the grantor has children. A trustee’s role takes effect in the event of the grantor’s death. Furthermore, to avoid fraud on Living Trusts, a successor trustee may be named. A successor trustee guarantees that the trust is steered and distributed precisely among its beneficiaries. In addition, a trustee never gets any benefits unless stated in the trust document.
What is a Revocable Living Trust?
Living Trust must not be confused with Revocable Living Trust. Revocable Living Trust is a trust that can be revoked or cancelled by the grantor (creator of the trust). Divorce is one of the major reasons of Living Trust’s revocation, which nowadays can be filed online (Divorce Online). It is a trust usually formed to distribute assets before the death of the grantor. Through this trust, the grantor warrants that his or her assets are transferred and distributed smoothly and quickly.
