Sunday, November 28, 2010

Parties of a Living Trust

Settlor/Grantor - The person who creates the trust.

Trustee - The person who will manage the trust. The grantor and the trustee are generally the same person.

Successor Trustee - The person(s) with whom the settlor places the responsibility for managing and distributing the assets placed in the living trust after the settlor's death. If you pass away your successor trustee gathers your assets, pays valid debts, claims and taxes, and then distributes your assets as you have directed in your living trust without your assets being subject to probate.

Also, if you become incapacitated, your successor trustee can take over the management of the assets in the trust for your benefit without any further legal proceedings.

Beneficiaries - The person(s) named by the settlor to receive the assets after death. The settlor will designate in the living trust how the estate should be divided and when the beneficiaries would be entitled to receive the distributions. When the settlor dies, the successor trustee is responsible to distribute the assets according to the wishes of the settlor, as set out in the trust.

No comments:

Post a Comment