As long as you are the trustee of your own revocable trust, no special tax returns or accountings are required. For a revocable living trust, you can name yourself as the trustee and you therefore retain control of the assets during your lifetime. Who controls the assets of a trust? In short, the trustee. A testamentary trust is a trust that is created and funded at your death. An irrevocable trust is a trust that you create during your lifetime but that you relinquish the power to modify. A revocable living trust is a trust that is created and funded during your lifetime that you retain the power to amend or revoke. The person who creates the trust is known as the "grantor," "settlor," or "trustor." The persons who receive income or other distributions from the trust are the "beneficiaries." A trust, in essence, creates a duty for the person designated as trustee to hold and manage the trust property for the benefit of the beneficiaries as named in the trust document.ĭepending on the purpose of your trust, you may wish to create a revocable living trust, an irrevocable trust, or a testamentary trust. In its simplest form, a trust is the designation of a person or corporation to act as a trustee to deal with the trust property and administer that property in accordance with the instructions in the trust document. One such example is the creation of a trust. There are numerous approaches that can address your various goals. Many of us share similar objectives when it comes to estate planning, including the desire to: (a) plan for our disability (b) provide for our spouse and/or children (c) provide for the distribution of our assets (and payment of any debts) after our death and (d) avoid or reduce federal and state estate taxes.
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