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Who are the parties to a trust?

A trust is a legally created entity designed for the protection, growth, and distribution of assets. There are three different roles in a trust, with nearly endless combinations of trust parties. A trust can be created by one person or many, it can be run by anyone the founders choose, and it can benefit a specific person or group of people. Each role in a trust comes with different responsibilities and expectations that must be followed in order for the trust to succeed.

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Inter Vivos Trusts

Intervivos trusts are trusts created while you are still alive. There are many types of intervivos trusts, which avoid probate court and some of which can even help you reduce and avoid estate taxes.

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What is a Crummey trust?

Crummey is the name of a taxpayer who succeeded getting an annual exclusion by establishing a trust containing withdrawal rights for the benefit of minor children. A Crummey trust is a special form of trust that contains a provision allowing one or more beneficiaries the right to withdraw the lesser of either the annual exclusion amount or the value of the gift property transferred into the trust. Crummey trusts specify the time each year when the funds can be withdrawn to ensure that the beneficiary does not incur gift taxes. Crummey trusts are most commonly created for minors and irrevocable life insurance trusts.

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What is involved in trustee resignation?

Trustee resignation should usually occur according to the terms of the trust. Other times, a trustee resignation form may be used. It is important that a trustee who wishes to withdraw properly do so in order to avoid any future liability.

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How do I put property into a living trust?

Living trusts are legally-designed instruments meant to remove ownership from the creator of the trust, thus helping them avoid probate court proceedings. In order for a living trust to be considered valid, it must contain the creator’s property. This means that property must be transferred or put into the trust by removing ownership from the grantor and placing ownership in the trust.

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