What is a Trust Agreement?
A trust agreement, is an arrangement where assets are held with specific stipulations as to how and when a beneficiary or beneficiaries may access the assets. A trustee (or more than one trustee) is appointed to have legal ownership of assets within the trust. The trustee may or may not be a beneficiary.
Types of Trust Agreements
Inter Vivos Trust
An inter vivos trust is a trust created by a person for the beneficiary to receive while the creator of the trust is still living. This is often used to create a family trust in order to split an income between family members for tax savings.
A testamentary trust is a trust created in a will to be accessed by the beneficiaries after the creator of the trust has deceased. This type of trust is often used to ensure that children receive an inheritance when they reach an appropriate age, to maintain a family’s ability to split income after one family member passes away, and various other reasons.
How Do I Set Up a Trust?
Our experienced lawyers can help you determine what type of trust is best for your situation and prepare your trust documents. Get in touch today and we will go over the different types of trusts and how best to move forward with creating a trust that best fits your needs.