For many people, the process of estate planning begins with the question: “Do I need a Trust?”
In the remainder of this article, a question and answer approach will be used to help the reader understand what a “Trust” is, and what considerations go into deciding whether having a Trust would be beneficial in their situation.
What is a Trust?
A Trust is an agreement. In fact the term “Trust” is shorthand for “Trust Agreement.” agreement is between the person who creates the Trust (the “Settlor,” sometimes also known as “Grantor”) and the person who receives the property from the Settlor, the “Trustee.” The Trust is the document that spells out the manner in which the Trustee will handle any property that the Settlor transfers to the Trustee.