A trust is created by a Settlor (also referred to as a “Maker” or “Grantor”), who transfers property to a Trustee. At its most basic, a trust is a legal relationship whereby property is held by one party for the benefit of another. Learn more about trust establishment process in this presentation.

20. Revocable – a Settlor can modify
the terms, add or delete
beneficiaries, or even revoke the
trust at any time and for any reason
– or for no apparent reason

21. Irrevocable – once the trust takes
effect the Settlor cannot modify,
change, or revoke the trust for any
reason. A court may be able to do so
with good cause

24. Settlor – the Settlor is the person
who creates the trust
Trustee – the Trustee is
responsible for managing and
investing trust assets, disbursing
those assets to beneficiaries, and
generally overseeing the
administration of the trust

25. Beneficiary – every trust needs at
least one beneficiary, though it can
have many. A beneficiary can be an
individual, an entity, or even the
family pet

26. Terms – the Settlor creates the
terms of the trust which can be
almost anything as long as they are
not illegal or unconscionable

27. Assets – the trust must be funded.
Assets can be almost anything,
including cash or securities as well
as real or personal property

31. Managing and protecting trust assets
Investing trust assets using the
“prudent investor” standard
Fiduciary duty to the trust and trust
beneficiaries

32. Communicating with beneficiaries
Disbursing trust funds pursuant to
trust terms
Keeping detailed accounts and
records of trust business

33. Preparing and paying trust taxes
Making discretionary decisions if
allowed
Resolving conflicts with beneficiaries

36. Revocable living trust for
incapacity – by naming yourself
as the Trustee, and a trusted love
one as the successor Trustee, this
trust allows you to create a
mechanism by which control of all
trust assets automatically shifts to
the successor Trustee upon your
incapacity, thereby allowing you to
know ahead of time who will have
control of your assets

37. Asset Protection Trust – a type
of irrevocable trust used to protect
assets from creditors, spendthrift
beneficiaries, spouses, and any other
threats
Special Needs Trust –allows the
Settlor, and others, to provide
supplemental assets to a special
needs beneficiary without risking
eligibility for state and federal
assistance programs

38. Charitable Lead/Remainder
Trust – provides distributions to a
charitable beneficiary first for a set
period of time or for a set amount
of assets with the remainder
distributed to a non-charitable
beneficiary at the end OR the non-
charitable beneficiary may receive
benefits or vice versa

39. Pet Trust – provides for the care of
a pet after the death of the Settlor

40. Medicaid Trust – assets are
transferred into an irrevocable
trust, removing them from the
Maker’s “countable resources” for
Medicaid eligibility purposes.
Maker may benefit from the
interest earned by the trust but
cannot touch the assets. Ensures
eligibility for Medicaid to help pay
for long-term care

42. If you plan to establish a trust, it is
also imperative that you ignore the
temptation to use a DIY trust
agreement which are found online or
at a nearby office supply store
The risk of costly errors in a DIY
form are great and can cause your
trust not to function as intended