Trust creation is the creation of a specific trust for a specific party. In its simplest terms, a trust is a legal vehicle to provide for the organized distribution of property from one generation to the next and lets you, as the trustor, decide while you are living which assets you want to be given to whom when you pass away.
More specifically, a trust is a three-party fiduciary relationship in which the first party, the trustor, transfers a property (often but not necessarily a sum of money) upon a second party (the trustee) for the benefit of the third party, the beneficiary.
There are a number of different types of trusts. Some of the most common include, but are not limited to…
- Revocable Trusts – Revocable trusts (often referred to as living trusts) are created during the lifetime of the trustor and can be altered, changed, modified or revoked entirely.
- Irrevocable Trust – An irrevocable trust is one which cannot be altered, changed, modified or revoked after its creation.
- Asset Protection Trust – An asset protection trust is a type of trust that is designed to protect a person’s assets from claims of future creditors.
- Charitable Trust – Charitable trusts are trusts which benefit a particular charity or the public in general.
- Constructive Trust – A constructive trust is an implied trust. An implied trust is est