Estate Planning Knowledge
What is a trust?
A trust is a fiduciary relationship in which one party, known as the grantor, gives another party, the trustee, the authority to oversee the management and distribution of the assets for the benefit of the third party, the beneficiary.
A trust is a set of documents that are regulated by probate court.
Who needs a trust?
Anyone who has assets and would like to ensure that those assets go to persons of their choice without the court’s involvement
Anyone looking to divide assets among family members in a will, publicly.
What is a will?
A will is a document that expresses one’s wishes as to how he or she would like assets to be distributed upon death.
A will is a legal document that secures one’s estate along with reducing exposure to estate taxes
What is probate court for?
Probate court is a segment of the judicial system that primarily handles such matters as wills, estates, conservatorships, and guardianships, as well as the commitment of mentally ill persons to institutions designed to help them.
Probate court is a segment of the judicial system that only handles matters relating to wills.
As it relates to the will, the person left in charge of one’s affairs upon death is called a __________.
personal representative or executor
trustee or administrator
Upon the death of the grantor of a trust, the person left in charge of affairs is called a __________.
backup Trustee
successor Trustee
In a trust, what is the role of the trustee?
A trustee’s role is to adhere to the language stipulated in the trust by the grantor.
A trustee’s role is to distribute assets to the general public.
The creator of the trust is called a __________.
grantor, maker, or trustor
president, manager , or administrator
How are assets transferred into a trust?
To transfer assets such as investments, bank accounts, real estate, etc., you will need to complete an asset transfer form, accompanied by a trust certificate (a conveyance deed will also be needed for real estate).
To transfer assets, you will need to draft a document stating which assets you want to place in the trust and have each beneficiary sign the document; legal assistance is not required.
What is an estate plan?
An estate plan involves decisions relating to how an individual’s assets will be preserved, managed, and distributed after death or becoming incapacitated.
An estate plan is a document that is governed by the jurisdiction in which the benefactor resides.
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