Learning how to create a trust can be made easier by following a few tips. First of all, you should first check to see whether you’d be able to meet the basic requirements for making a valid trust. These can include:
In addition, trusts cannot be created under conditions that involve some form of illegal action, such as fraud or the use of illegal force.
A trust involves the transfer of money or property to one party, which will hold the funds until they are transferred to the intended recipient. Each of these parties has a specific name and definition:
Lastly, in some jurisdictions, the trust property is referred to as the “trust res” or “res”. This is a legal term that is used to refer to the property being held in trust.
You might be wondering, “What are the benefits of using a trust? Isn’t it easier to transfer the trust property directly to the beneficiary?” However, there are many benefits to using a trust, and certain life situations can actually make it necessary for a trustee to hold the property for some time.
For example, some situations where a trust can be advantageous include:
Other benefits of trusts include a greater amount of accountability of one’s own funds, as well as providing more overall management of personal funds. In other words, using a trust tends to make financial transfers more organized, and helps create a record of transfers.
Creating a trust can often be a major undertaking. If you need assistance with the creating, drafting, editing, or reviewing of trust documents, you may wish to hire a trusts lawyer in your area. Your attorney can assist you with the process to ensure that you’re meeting the various legal requirements for creating a trust. Also, your attorney can be on hand in the event that a lawsuit arises in connection with the trust.
Last Modified: 01-09-2017 05:49 PM PSTLaw Library Disclaimer
We've helped more than 4 million clients find the right lawyer – for free. Present your case online in minutes. LegalMatch matches you to pre-screened lawyers in your city or county based on the specifics of your case. Within 24 hours experienced local lawyers review it and evaluate if you have a solid case. If so, attorneys respond with an offer to represent you that includes a full attorney profile with details on their fee structure, background, and ratings by other LegalMatch users so you can decide if they're the right lawyer for you.