What is a trust?
Think of it as a container, a box.
Five Parts of a Trust
A trust has five basic components.:
• Trust maker (also called the grantor, trustor, or settlor)
• Corpus (assets in the trust)
• Terms of the trust Trust Maker
The trust maker (aka grantor, trustor, settlor) is the person who sets the trust up and transfers assets into it.
Purposes and Benefits of a Trust
A trust is a truly amazing document. It can accomplish many goals, many more than a will can. A trust is a “goal-achievement” vehicle. If you know what goals you want to achieve, a trust can usually get the job done.
Some of the purposes or benefits that folks often use a trust for are to:
• protect assets for minor children
• protect assets for adult children
– who can’t manage money
– who are credit risks
– who are at risk of divorce
– who are irresponsible or wasteful o who are immature
– who are not financially savvy
– protect assets for special-needs people