Trust: An agreement that describes how assets will be managed and held for the benefit of another person.
Why are trusts so important? What is the benefit? Most of us don’t know where to start, what the terminology means, and how to decipher anything that is going on. Oftentimes, when sifting through and trying to make headway on our own, we get overwhelmed and stressed out. Talking to an attorney that is experienced in this area can ease your mind, lighten your load and take the burden off of your shoulders. Before getting overwhelmed, familiarize yourself with the terms below.
Beneficiary
The beneficiary is the person benefiting from the trust. The beneficiary can be one or more parties. Multiple trust beneficiaries do not have to have the same interests in the trust property. Trust beneficiaries DO NOT have to exist when the trust is established.
Decedent
This person is typically the grantor of the trust – The person who has passed.
Grantor
Every trust has one. This special person is the creator and the one who has the legal capacity to transfer property held under the trust.
Property
Money, securities, real estate, jewelry, etc. is what is put inside a trust. Property can be any asset and can be transferred during the life of the grantor or under the will of the grantor after death.
Trustee
The trustee of the trust can be any legal individual/corporation that can take title to the property on behalf of a beneficiary. The trustee is responsible for managing the property according to trust & must always act in the best interest of the beneficiary. The trustee must be prepared to be held accountable to the grantor and/or beneficiaries.
Surviving Spouse
The spouse who survived the decedent.
Don’t get overwhelmed. Let’s discuss your options. The Kabb Law Firm is dedicated to educating the community about Elder Law issues and how Life Care Planning can help. We know you are trying to find out as much as you can about how to care for your loved one and our resources can help. Call 216-991-KABB today for your free consultation, or visit www.kabblaw.com.
