How Do I Create a Trust?

Book An Initial Call Now
POSTED ON: September 2, 2022

How do I create a trust? A trust fund is a legal entity you create that takes ownership of your assets and ensures that the assets are used in a way that's beneficial to your loved ones, explains Yahoo Finance’s recent article entitled “How to Start a Trust Fund the Easy Way.”

Trust funds are created by a grantor, who sets up the trust and transfers money or property into it. The trust is created for a beneficiary who will benefit from the property held within the trust. However, the trust is the legal owner of that property. The grantor will name a trustee who will have a legal obligation to effectively manage the trust property following the grantor's instructions.

There are many benefits of setting up a trust to protect your family's finances. You can use a trust to transfer assets outside of probate, and certain trusts arrangements may also help ensure that you don't lose your money paying nursing home costs toward the end of your life.

You can also use a trust to make sure money is appropriately managed for your children or grandchildren. This can be especially helpful when leaving money to younger adults, as well as for older beneficiaries who don't know how to invest money effectively.

The specific advantages of a trust depend on the type of trust you create. There are many varieties.

A trust is typically created when a grantor decides that having a separate legal arrangement for managing property is needed. He or she will work will an estate planning attorney to complete the legal paperwork needed to establish the trust and will designate a trustee to manage trust assets and the beneficiaries who will receive those assets. If the trust is a “revocable living trust,” one of the most common, then that trustee likely will be the grantor.

The grantor will transfer the legal ownership of money, property, or other assets to the trust.

The trustee is responsible for managing the trust assets responsibly and making distributions of assets to beneficiaries, when appropriate and according to the instructions of the grantor. This might be something like when a grantor created a trust to pay for college costs for his children, the trustee will distribute the money to cover tuition bills.

Trusts can sometimes be changed, but in other types, they’re irrevocable and changes can't easily be made once they are created. Expert legal advice and counsel is needed to get this right.  If you need help with your estate planning book a phone appointment with me.

Reference:  Yahoo Finance (March 18, 2022) “How to Start a Trust Fund the Easy Way”

Let Us Help You Through This

Reach Out Now

What Sets Us Apart
We understand this process can be difficult. We ease you through it with your best interest in mind.

Legal problems are extremely stressful, especially when your family, your health, or your freedom are at stake. At this point in time, you may not even be sure what kinds of questions you need to ask a lawyer, but that’s entirely normal. Whether your situation involves family law, estate planning, elder law, a criminal charge, or a personal injury, we will start by giving you all the information you need.

The way we see it, you deserve to get this information directly from an expert. That’s why we make it easy for you to get in touch with your lawyer, and we never ask you to sit down with a paralegal or assistant instead.

As our relationship continues, we will keep you updated about the status of your case every step of the way. Your lawyer will reach out regularly to tell you about any new developments, and he will also be happy to answer any questions you have throughout the process.

Join Our eNewsletter

Stay informed and updated by subscribing to our eNewsletter!
Subscribe Now!
Law Offices of Claude S. Smith, III

805 Bigley Avenue
Charleston, WV 25302

Get Directions
Integrity Marketing Solutions - Estate Planning Marketing
Powered by