- Has three parts - Grantor, Trustee and Beneficiary.
- Trust can be changed at any time.
- Separate tax return can be filed, but rarely done (requires grantor to obtain Tax ID Number).
- Common for grantor and trustee to be the same person.
- Grantor retains control of the assets - therefore they are responsible for paying the tax liability associated with the income and realized gains generated from the trust.
- Avoids probate.
- Cannot be changed after the agreement is signed.
- Most trusts revert to irrevocable at death of grantor.
- Typically used for estate tax planning, asset protection, probate avoidance or charitable gift planning.
- Grantor, trustee and beneficiary are usually always different individuals or organizations.
- Separate tax identification number is issued.
- Taxes due from income, gains and losses are paid by the trustee, typically from the trust.
Managing WealthA revocable trust is a legal arrangement whereby a grantor transfers property to a trustee who holds the property in trust for the grantor’s benefit.
Financial AdvisorUnsure of how your assets will be dispersed once you're gone? Here's how setting up a revocable trust while you're here can be a big benefit.
Managing WealthTrusts are an estate plan's anchor, but the terminology can be confusing. We cut through the clutter.
Financial AdvisorSeveral improvements and additional provisions have been added to irrevocable trusts in recent years making them considerably more versatile than before.
Financial AdvisorRevocable living trusts accomplish estate planning objectives that aren't possible with a will. Here are some of the cases that show when to use a trust.
Managing WealthContrary to popular opinion, trust funds are not just for the rich. Middle class citizens can set them up, as well.
InvestingLearn the basics of how a trust works and the two most common types. Discover how to use ETFs to fund a trust and the different strategies.
Managing WealthIn an irrevocable trust, the grantor gives up the right to revise, amend or terminate the trust without the permission of the beneficiary. An irrevocable trust is best used as an estate-planning ...
InvestingThis arrangement allows you to have more control over your estate - both before and after your death.
InvestingThese funds offer a very hands-off experience for the low-involvement investor.