If a loved one created a trust for the purposes of accomplishing estate planning or transferring assets, you could be listed as a beneficiary of assets inside that trust. If so, it is to your benefit to educate yourself about how trust works so that you can be fully prepared for what to expect. There are numerous different ways to establish a financially secure future for loved ones, but trust funds are very popular and are not necessarily for only very wealthy people.
You can create a trust fund to ensure that your loved ones receive your assets in a very specific way. A trust fund is a legal entity holding property or assets on behalf of an organization, group or person. A trust fund can include assets, such as a business, money, stock, property, or any combination of these.
The trustee is the fiduciary party who is appointed with a legal responsibility to manage assets inside the trust and then distribute them according to the terms of that trust. Trust funds allow for a lot more specificity and control than funds passed through a will. A will becomes a matter of public record and does not always confirm that your specific wishes will be followed. However, only beneficiaries and the trustee of a trust are familiar with the conditions and the contents of a trust fund. If you have questions about the specific terms of a trust, or your ability to receive assets through it, communicate with the trustee appointed on your trust.
Our Pasadena estate planning attorneys are here to help and guide you through the process. Contact us today for more information about how to structure your estate planning documents and strategy.