TRUSTS

Trusts

Separates control and benefit of the property- the trustee controls it, and beneficiary enjoys it

Four key elements required to create the trust

Grantor, Trustee, Beneficiary, and Trust res

Grantor

creates the trust

beneficiary

one who receives benefits under trust

Trust res

Property or assets held in a trust.

When can a trust be created?

Can be made during life or by will

What is the difference between legal and equitable title in a trust?

The trustee holds legal title and beneficiary holds equitable title

Main advantages of creating a trust?

-Avoids probate

-Provides certainty and protection

-Flexible for estate planning

-Can protect assets from creditors

Main disadvantages of trusts

-Costly to maintain

-Separate taxable entity

What is the fiduciary duty of a trustee?

To act in the best interests of the beneficiaries and manage the trust property prudently and impartially.