Newspaper article St Louis Post-Dispatch (MO)

What a Trust Can Do for You

Newspaper article St Louis Post-Dispatch (MO)

What a Trust Can Do for You

Article excerpt

A trust is a marvelously flexible device that can be adapted to deal with a variety of problems.

A legal entity created to hold title to, manage and eventually distribute the assets transferred to it, a trust can assure the private and efficient administration of your property and achieve important objectives, such as providing a fund for education or support of dependent parents.

Trusts have four essential parts:

The grantor (aka settlor, trustor): the person who transfers his assets (known as principal or corpus) to the trust and establishes its terms.

The trustee: the person appointed by the grantor to manage the trust.

Income beneficiary: the person named by the grantor to receive the income during the term of the trust.

Remainderman: the person designated to receive the assets upon termination of the trust.

Depending upon the objectives, the grantor can be the trustee, income beneficiary or remainderman.

A trust the grantor creates during his lifetime is called a living trust or inter vivos trust.

A trust created under a will is a testamentary trust.

All trusts are either revocable or irrevocable. In a revocable trust, the grantor reserves the power to terminate the trust at any time during his lifetime or to otherwise change its terms.

Once created, an irrevocable trust cannot be revoked and usually cannot be changed or modified. A testamentary trust is necessarily an irrevocable trust.

A living trust offers:

Assured professional management of property. If, for example, you have a sizable investment portfolio without the time to manage it, a professional trustee could be appointed to do so.

Continued payment of bills or other obligations in the event you become sick or incapacitated, without requiring the appointment of a guardian or conservator of your property.

Avoidance of probate. Assets that pass under a will are subject to probate, which in many states is a tedious, time-consuming process that can delay the transfer of assets to the rightful recipients. …

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