Trustee

Types of Trust

There are various types of trusts, which can be either revocable or irrevocable.

Testamentary Trust

A Testamentary Trust is a trust created in a Last Will and Testament. After a probate proceeding the trust becomes a beneficiary from the Last Will and Testament.

Revocable Trust

A Revocable Trust is also known as an Inter Vivos Trust or a living trust. Generally, the Grantors, the individual or individuals creating the trust, are alive upon the creation of the trust. The Grantors are also the Trustees of the trust.

The Revocable Trust can be changed while one or both of the Grantors are alive. However, upon the death of one or both of the Grantors, the revocable trust becomes irrevocable (non-revocable). The primary purpose of a Revocable Trust is to avoid the probate process.

Supplemental Needs Trust

A Supplemental Needs Trust is generally created to hold benefits for a person who is, or likely will be, on government benefits. This permits the assets in the trust to provide “supplemental needs” to the person without losing the benefits under a government program, such as Medicaid. Upon the death of the beneficiary the assets are distributed to the persons or entities determined at the time of the trust’s creation.

Special Needs Trust

A Special Needs Trust is essentially the same as a Supplemental Needs Trust except at the death of the beneficiary the funds are first used to pay back the government for the benefits received. If there are any funds remaining the assets are distributed to the persons or entities determined at the time of the trust’s creation.

Minor’s Trust

A Minor’s Trust is a trust created either through a Last Will and Testament or a Revocable Trust. The trust hold funds for a minor until the minor reaches a predetermined age. Prior to final distribution, the trustee may distribute income and principal for the minor’s benefit, such as medical, education, living expenses.

Other Trusts

Trusts can be created for a variety of reasons, including charitable, holding real estate, and other specific purposes.

Why have a Corporate Trustee?

A corporate trustee, such as Fiduciary Solutions, can provide services which an individual trustee may not be in a position to provide. Some of these reasons include: