The only difference between dying and living is that when one is alive you tend to do things one at a time but when the time comes for you to die you do things all at one time. So the best thing is for you to take care of everything while well and in good health. One of the concerns when someone dies is the division of assets by the surviving dependents and beneficiaries. The division alone of assets can cause great family problems and so to prevent such from happening a Trust have to be created. A Trust is a well recognized type of legal entity which is used to hold legal titles of properties for the benefit of one or more persons. The person who makes the Trust is called the Trust Creator or Grantor and the person or the institution holding the Trust is called the Trustee. The property that is transferred or included in the Trust is termed as the Trust Estate. Likewise, the recipients of the Trust are called the beneficiaries.
The Trust Estate includes all the property as well as the rights and obligations that are transferred to the Trust. The Trust Estate is administered in agreement to the terms and conditions of the document creating the Trust. The Trust agreement or the declaration of Trust refers to the written documents that provide the terms and condition of the Trusts. The Trust agreement or declaration of Trust either of an individual or married couples includes the statement of the intention of the Trust. Also included are the names of the Trust creator’s family members or any person that the Trust creator may want to add. Likewise, the names of the initial Trustee or Trustees are included in the Trust. Their functions are also stated together with the circumstances in which a Trustee may be change. Some of the cited reasons why a Trustee can be change are due to the unwillingness of a Trustee to do his function or in the event of illness, death and any other reason.
And also stated in the Trust is the extent of powers or authority a Trustee should have when it comes to investment as well as management and the terms in releasing money to the beneficiaries. Furthermore, the Trust also includes the determination of the eligible beneficiaries however spouses are typical beneficiaries in a living Trust. The Trust also site who are to receive distribution of the Trust Estate upon the death of the grantor and the Trust also specifies when beneficiaries are going to be entitled to receive the distribution of the Trust Estate.
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Jinky C. Mesias is a graduate of Bachelor of Science in Business Administration major in Management. She is currently an Associate Manager of a Life Insurance Corporation and a freelance writer.
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