Revocable Trusts are used regularly in estate planning. If your estate plan includes a revocable trust or if you are considering a revocable trust, it’s important to understand revocable trust terminology. The following terms are used in revocable trust and should be understood:
- Trust: a relationship whereby property (including real, tangible and intangible) is managed by one person (or persons, or organizations) for the benefit of another.
- Settlor: person who creates a trust, who entrusts some or all of their property to people of their choice. Also known as trustor, grantor, donor or creator.
- Beneficiary: person for whose benefit the trust is established; who holds equitable title to the trust corpus; who are the “beneficial” owners of the trust property.
- Corpus: trust property
- Trustees: persons or entities who hold legal title to the trust property, but are obliged to hold the property for the benefit of one or more individuals or organizations, usually specified by the settlor. The trustees owe a fiduciary duty to the beneficiaries.
- Trust Protector: person who has no beneficial interest in the trust who can perform various duties, including: removing a trustee, amending a trust, correcting a scrivener’s error, and other duties allowed by statute or judicial decision.
It is important to understand your estate plan and if your plan includes a trust, that you understand the different roles and responsibilities of the settlor, beneficiary, trustee and trust protector. If you or someone you know is interested in creating their estate plan, talk to the experts at Grissom Law, LLC at 678-781-9230, and find out how we can assist you today.
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