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Documentation - Trusts

Trusts
A trust is a vehicle whereby one person or entity holds and manages property for the benefit of another. There are three parties to a trust arrangement. The person or entity that holds the legal property interest is called the "trustee," the person for whom the property is being held is called the "beneficiary" and the person establishing the trust is called the "grantor."

Trusts allow the trustee to direct or control the assets held in the trust in the manner dictated by the trust document. Trustees have a legal duty, referred to as a fiduciary duty, to make decisions and act in good faith regarding the trust beneficiaries.

A trust can take one of two forms:

Revocable and irrevocable trusts that are established during the grantor's life are called inter vivos trusts. A trust created in a will and designed to go into effect upon the testator's death is called a testamentary trust.

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