Having a Trust allows for a seamless transition upon your incapacity and/or death. A Trust is created when a party (known as the “Grantor”, “Settlor” or “Trustor”), transfers property (real and personal property) to a person or company (known as the “Trustee”), to hold said property in accordance with the provisions of a written instrument (the trust document), for the benefit of one or more persons or entities (the “Beneficiaries”).
There are various reasons one may want to create a trust, including but not limited to, avoiding probate, providing asset management, minimizing state and federal transfer taxes, and ensuring your assets are distributed at your death according to your wishes.
A common form of a Trust is a revocable living trust. A revocable living trust allows the Grantor to remain in control of the trust assets while serving as the initial trustee and to retain the authority to make changes to the terms of the trust document during his or her lifetime. Upon the Grantor/Trustee’s incapacity, the Successor Trustee will manage the trust for the Grantor’s benefit pursuant to the terms of the trust. Upon the Grantor’s death, the Successor Trustee will settle the Grantor’s estate and trust and distribute the assets pursuant to the terms of the Trust.
