Trust instruments are versatile and sometimes help avoid probate altogether. A trust is typically used if a person wishes to place their assets in a vehicle that allows them and/or someone else to manage those assets (known as the “trustee”) while still being able to use those assets for the trust creator’s (known as “grantor” or “settlor”) benefit. For instance, if a person has several properties in a trust, the trust holds title to the property but the grantor is able to manage the properties and use the income for his or her benefit. However, if the person is no longer able to manage the properties in the trust, a successor trustee can be named. That person may step in to continue to manage the trust properties in accordance with the trust documents. If the grantor dies, trusts typically allow for distribution of property from the trust to the trust beneficiaries without the need of a Probate proceeding.
Creating a trust is especially helpful if the grantor(s) has/have assets and minor children. Since minors cannot inherit property, parents or family members with young children can plan for the minor to receive expected inheritance through a trust as opposed to outright to the minor, which would likely cause the assets end up in a guardianship.
The experienced Trust and Estate Planning Attorneys at the Law Office of Fausto A. Rosales, P.A. have drafted numerous trusts of all shapes and sizes. Trusts can be narrow or broad in their purpose. Give us a call to discuss if a trust is right for you and your family as part of your estate plan.