What is a trust?

A trust is a legal document that is an agreement between the grantor (the person setting up the trust) and the trustee (the person who manages the trust). The grantor will transfer assets to the trustee and the trustee will hold and manage the assets for someone else, known as the beneficiary. Trusts can be set up for a variety of reasons, one of which is disability planning. When setting up a trust for disability planning, the grantor transfers funds and assets to the trustee who is then responsible for managing those assets for the benefit of the disabled beneficiary. The trustee is responsible for investing the assets and distributing them in accordance with the grantor’s wishes for the benefit of the beneficiary. A trust can also be used to help the disabled individual avoid probate and will protect assets from creditors and other potential claimants. In North Carolina, trusts can be set up in accordance with the North Carolina Uniform Trust Code. This code outlines the elements of a trust as well as the responsibilities of the trustee and the grantor. It also sets forth the rules for administering and managing the assets of a trust. Additionally, the code allows for trusts to be tailored to meet the individual goals of the grantor and beneficiary, providing flexibility in setting up trusts for the benefit of a disabled individual.

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What is a trust?

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