What is a Trust?

A trust is one of the most common estate planning techniques available.

While there are many different variations of trusts, they all share the same basic structure.

The creator of the trust is called the grantor who signs an agreement with a trustee who agrees to hold assets in trust for the grantor’s chosen beneficiaries. Sometimes the grantor and the trustee are the actually the same person.

Think of the trust like a bucket.

The grantor creates a bucket and puts assets into it, such as bank accounts and a home.

The trustee’s job is to hold the bucket handle and the assets “in trust” for the beneficiaries named by the grantor.

The trustee administers the trust according to the rules laid out by the grantor including how and when to take assets out of the bucket and give them to the beneficiaries.

The benefits of trusts can include:

probate avoidance
flexibility
cost savings
tax planning
privacy; and
peace of mind

Watch for other videos where I describe specific types of trusts in more detail.

As always you can call us 801-765-0279 for a free consultation.