The "living trust" described in this brochure is a revocable living trust . It is sometimes referred to as a revocable inter vivos trust , or a grantor trust . A living trust may be amended or revoked by the person creating it (commonly known as a "trustor," "grantor" or "settlor"), at any time during the trustor's lifetime, as long as the trustor is competent.
A trust is a written legal agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the "trustee.") In many cases, it is appropriate for you to be the initial trustee of your living trust, until management assistance is anticipated or required.
In a living trust agreement:
- The trustee is given the legal right to manage and control the assets held in the trust.
- The trust provides for the persons or charitable organizations ("beneficiaries") who are to receive the income and principal on or after the trustor's death.
- The trustee is given guidance and certain powers and authority to manage and distribute the trust property in a prudent fashion. The trustee is a "fiduciary." A fiduciary is one who occupies a position of trust and confidence and is subject to strict responsibilities, usually higher standards of performance than one who is dealing with his or her own property. Without the trustor's express written permission, the trustee cannot use trust property for the trustee's own personal use, benefit or self-interest. One must hold the trust property solely for the benefit of the beneficiaries of the trust.
http://www.ofseyerlaw.com/lawyer-attorney-1090744.html
