Overseeing a Trust can be a complex affair, especially if you’re not familiar with the “legalese” that normally frequent Trust documents. A good attorney can be invaluable during this process, but it also helps to understand some of the common terminology you’ll see.
This is someone who has passed away. When talking about trust administration and estate planning, the decedent is typically the creator of the trust or plan in question.
The person who creates the Trust. Also known as the Trustor and Settlor.
The Successor Trustee is the person that takes over after the original Trustee has died or is otherwise no longer able to oversee the Trust. The Grantor designates the Successor Trustee when the Trust is created.
This document acts as a pass-through for any assets that might not have been added to the trust. It does not distribute assets but rather, passes or “pours” them directly into the trust when the Grantor passes away.
Also known as a Family Trust or Living Trust, this type of trust can be changed after it is created. Assets can be added and removed and modifications can be made, all at the discretion of the Trustee and for the benefit of the Grantor. In fact, the Grantor still controls the assets in the trust and can also act as the Trustee. A Revocable Trust is most often used to avoid probate and simplify the distribution of assets.
The main difference between this and other types of trusts is that an Irrevocable Trust cannot be changed. Once it is created, the Grantor no longer has control over the assets. Instead, the trust is managed by the designated Trustee and any changes must be approved by all the beneficiaries of the trust. In addition to avoiding probate and simplifying the distribution of assets, an Irrevocable Trust can also provide protection against collections and lawsuits.
Got questions? Let our Trust Attorney guide you through the Trust Administration process. We have the experience and expertise to help you comply with all Florida statutes and regulations. With Spiegel Law, PLLC, managing a Trust has never been easier. Call us today for a free consultation!