A trust is an agreement that determines how a person's property is to be managed and distributed during his or her lifetime and also upon death. A “revocable living trust” or “inter-vivos trust” normally involves three parties:
The Grantor - This is the person who creates the trust, and usually the only person who provides funding for the trust. More than one person can be the grantor of a trust, such as when a husband and wife join together to create a trust. The grantor can also be referred to as the “Settlor”.
The Trustee - This is the person who holds title to the trust property and manages it according to the terms of the trust. The grantor often serves as trustee during his or her lifetime, and another person or a corporate trust company is named to serve as successor trustee after the grantor's death or in the event the grantor is unable to continue serving for any reason.
The Beneficiary - This is the person or persons who will receive the income or principal from the trust. This can be the grantor (and the grantor's spouse) during his or her lifetime and the grantor's children (or anyone else the grantor chooses to name) after the grantor's death.
A trust is classified as a "living" trust when it is established during the grantor's lifetime and as a "revocable" trust when the grantor has reserved the right to amend or revoke the trust during his or her lifetime. A “testamentary trust” set up in a person’s last will and testament begins upon the testator’s (maker of the will) death.
When you need to establish a trust to protect and manage your property, Mr. Nichelson will take the time to familiarize himself with your particular situation and develop a solution that is right for you. He has experience with revocable living trusts, irrevocable trusts, and testamentary trusts, and he will advise you on the best option for your circumstances.