What is all this "Trust Talk"?
Sometimes "legalize" can be confusing since attorneys seem to have their own language to describe estate planning. For example, even setting up a basic trust may involve terms you are unfamiliar with and which you use day to day. The following is a short "ABCs" of trust terminology.
1. Trust:
First of all, what is a trust? A trust is an arrangement whereby property is transferred with an intention that it be held and administered by a person for the benefit of another person.
2. Settlor:
The person who drafts the trust is called the settlor.
3. Trustee:
This person who administers the trust property is called a trustee. There can be more than one trustee to a trust, they are called "co-trustees"
4. Beneficiary:
The person for whose benefit the trustee holds the trust property is called the beneficiary.
5. Trust Instrument
A trust instrument is the formal legal document that creates the trust and sets forth the responsibilities and powers of the trustee and specifies the rights of the beneficiaries to the trust property.
6. Trust Property
Trust property is any asset which the settlor puts into the trust. You cannot have a trust without trust property.
Now that you know the basics, you may want to consider what type of trust would suit your needs. If you would like more information on setting up a trust you should consult with an experienced Los Angeles estate planning lawyer.