Creating a Trust

Creating a trust is not as important as creating a will during a person’s lifetime but it can be helpful for a variety of reasons including privacy, security, guaranteeing that minor children are financially provided for and making sure that your property is distributed to specific persons. A trust is a legal arrangement where property is managed by an appointed person for another person. The trust is created by a settlor, who then entrusts his or her property to people of his or her choice who are known as trustees. A legal title to the property is held by the trustees, but is obliged to hold the property for the benefit of one or more individuals known as the beneficiaries of the trust, who are specified by the settlor. It is possible for one to create a trust on his or her own but it really should be done in the presence of an attorney, who will make sure it is written correctly and legalized.

Selecting a Trust Type

Some worry or stress for a person considering creating a trust because there are so many types of trusts to choose from on that list. Choosing which type of trust to create all depends on the needs of the trustor looking to create a trust. Obviously, if a trustor needs to keep his or her property private he or she would select a private trust and the same can be said for a trustor that wishes to make their property public. The trustor would then create a public trust. If a person wishes to create a trust upon their death, he or she would insert the instructions into their will and a testamentary trust will be created when he or she passes away.

Tips for Creating a Trust

When creating a trust you should consider what property you will place in the trust, which that property will go to upon your death, and who the executor of the trust will be. Another tip is to consult an attorney when creating a trust so that it is done legally and it follows your local trust laws. Also, choose an executor who you trust and know very well. This should also be someone that knows your family very well and has your beneficiaries’ interests at heart.

Consulting with a Wills and Trusts Lawyer

If you or a loved one is interested in creating a living trust or a testamentary trust, contact a wills and trusts attorney immediately for expert legal counsel regarding your situation. An attorney will be able to answer all questions about the various forms of trusts, how to create the trust, who to choose as the executor and who to choose as the beneficiaries. The fees incurred during this process include those paid to the attorney for their services and the fees paid to have the trust notarized.