This is the name given to the person who terminates or establishes a trust. Other names are a trustee, settlor or grantor and all have the same meaning in the law. The creator of the trust would be called Setblor. Fiduciary duty is the duty of the trustee when it comes to the assets and income of the trust. The trustee carefully guards the property exclusively for the benefit of the beneficiary. The trustee has a duty of good faith and a duty of loyalty to exercise reasonable care and skill and to maintain, render productive and account for the assets of the trust. Since the trustee is a trustee, this does not mean that he or she is a representative of the beneficiary. The person who establishes a trust should not be confused with the settlor who provides the property that constitutes the principal of the trust. Trust instrument – A document, including amendments, signed by a settlor that contains conditions under which the assets of the trust are to be managed and distributed. Also known as a trust agreement or trust agreement. A revocable trust may be amended or terminated by the settlor during his or her lifetime. An irrevocable trust, as the name suggests, is a trust that the settlor cannot change once established, or a trust that becomes irrevocable after death.

Appointment Authority – The power granted to a person (usually a beneficiary) under the terms of a trust to transfer ownership to certain persons when that person`s interest in the trust or other special circumstances ends. The person who receives the power is usually called the “holder” of the power. The power of appointment can be general, so that the property can be allocated to anyone, including the owner, or limited, so that the property can be distributed to a specific group or person other than the owner. Real property subject to the general appointing authority may be included in the owner`s gross estate for federal estate tax purposes. Fiduciary – A person, bank or trust company appointed to manage money or property for beneficiaries and is required to exercise the standard of care set out in the relevant document under which the trustee acts and the law of the State. Trustees include executors and trustees. Transfer on death – Beneficiary designation for a financial account (and in some states for real property) that automatically transfers ownership of assets upon death to a designated person or revocable trust without estate. Often referred to as TOD (Transfer on Death) or POD (payable on death). Non-generational transfer tax (GST) – A federal tax levied on direct gifts and escrow transfers, whether living or dead, to beneficiaries who are two or more generations younger than the donor, such as grandchildren who exceed the GST exemption.

The GST tax imposes a transfer tax that would otherwise avoid gift or inheritance tax at the skipped production level. Some states impose a state transfer tax that skips the generation. Family trust – A trust established to assist a person`s spouse, children or other family members. A family trust is often a circumvention trust or credit shelter trust created under a will. This document will be used as an insurance policy in your estate plan in case you accidentally leave an account outside your newly created trust. All accounts you wish to distribute through the Distribution Escrow Plan must be titled in the name of the “Revocable Living Trust”. An example would be in the case of an annuity, a caisse populaire account, a brokerage account or a bank account that is not entitled to a security. With the complete transfer document, we can file a Heggstead motion with the court and inform the judge that your intention was for any account outside the trust to be designed as an escrow account without a designated beneficiary. This petition is a summary legacy. We include it in all our estate planning packages. Insurance Trust – An irrevocable trust created to hold life insurance for an individual or couple and designed to exclude the proceeds of the policy from the insured`s gross assets in the event of death.

Under state law, a constituent trust is a trust in which the settlor of the trust is also the sole beneficiary of the trust. See 8101120.2008.2. which can be constitutive. State law on constitutive trusts varies. If necessary, contact your regional office. Trustee – An individual, bank or trust company responsible for holding and administering the assets of the trust (also commonly referred to as a “trustee”). The term generally includes original (original), supplemental and subsequent trustees. A trustee has a duty to act in the best interests of the trust and its beneficiaries and in accordance with the terms of the trust indenture. A trustee must act in person (unless delegation is expressly authorized in the trust indenture), with the exception of certain administrative functions.

You should consult a lawyer to draft a will that contains testamentary trust dispositions. Terms of a trust – The manifestation of the settlor`s intention, as expressed in the trust indenture or as evidenced by other evidence that would be admissible in legal proceedings. Below is a list of some of the most common types of trust funds: Totten Trust: Also known as a liability account, this account is created during the life of the trustee, who also acts as a trustee. It is typically used for bank accounts (physical assets cannot be invested). The big advantage is that the assets of the trust avoid succession after the death of the settlor. This variety, often referred to as “trust of the poor,” does not require a written document and often costs nothing. It can be easily determined by having the account title contain identifying terms such as “trustee for”, “payable in case of death” or “as trustee for”. Mantor/settlor: The person who creates the trust is called a settlor or settlor.