Trust Creation is a method of safeguarding your wealth over generations against misuse. The trust ensures that your wealth is preserved and is utilized for only those purposes as intended by you. It is a legal document that can, in some cases, partially substitute for a will. With a revocable living trust (also known as a revocable inter vivo trust or grantor trust), your assets are put into the trust, administered for your benefit during your lifetime and transferred to your beneficiaries when you die—all without the need for court involvement.
Most people name themselves as the trustee in charge of managing their living trust’s assets. By naming yourself as trustee, you can remain in control of the assets during your lifetime.
In addition, you can revoke or change any terms of the trust at any time as long as you are still competent. (The terms of the trust become irrevocable when you die.)
In your trust agreement, you will also name a successor trustee (a person or institution) who will take over as the trustee and manage the trust’s assets if you should ever become unable to do so. Your successor trustee would also take over the management and distribution of your assets when you die.
A living trust does not, however, remove all need for a will. Generally, you would still need a will—known as a pour over will—to cover any assets that have not been transferred to the trust.
You may have a case of nurturing or may be catering to a disabled child or ailing family member who needs special care and attention.
You may have a case of nurturing or may be catering to a disabled child or ailing family member who needs special care and attention. You are not sure of how this care will be extended in case you were not around. This can be made possible through the creation of a trust. The turst will be governed by specific predefined purposes and the trustees appointed to the trust will have legal binding to fulfill the purposes as mentioned in the trust deed.
You may intend to pay back to the society for all good reasons you may have and may wish that this good work of charity should continue perennially continue after your life you may do so through the powers and finances that you may vest in a specific purpose trust.
A trust is a wonderful auto piloted mechanism to ensure that your intended purposes are met whether you are present or not.