What is a Trust?

A trust is a means by which assets or property is held or distributed by a "trustee" for the benefit of "beneficiaries." A "trustee" is a person appointed by you, the "grantor," to act on your behalf. A trustee has a fiduciary responsibility to the grantor, which means they must act as a responsible person would act in dealing with the property of others. In other words, the trustee must always act for your benefit rather than their own. The property over which the trustee has control is called the "corpus". "Beneficiaries" are the individuals the grantor designates to receive the benefit of the assets.

Trusts provide a means of effective property management after your death or incapacity. Trusts meet several needs where the grantor wants to provide ongoing management of property for a spouse, children, charitable organization, or any other person or entity. Living Trusts help avoid probate if they are properly created.