What is a trust?

A trust is a legal agreement that allows a person (the “grantor”) to transfer assets to a trustee to manage and distribute to a beneficiary. A trust is typically used in disability planning law to allow the grantor to make sure their assets are managed in the best way possible for the benefit of the beneficiary. In Virginia, trust funds are commonly used as part of disability planning. These trusts allow the grantor to set up rules for how the money will be managed and distributed, and can also provide ways for the beneficiary to maintain their independence and quality of life. Trusts can also provide tax benefits and protect the beneficiary’s assets from creditors. In order to set up a trust, the grantor must designate a trustee, which could be a family member, attorney, financial professional, or bank. They must also designate the beneficiary, which is usually the disabled person receiving the funds, and set up rules for how the funds will be managed and distributed. The grantor can also include special provisions in the trust that address a beneficiary’s medical needs or provide for education expenses. Trusts can be hard to create and manage, so it is important to consult an attorney or other professional to make sure your trust is set up properly and meets all applicable laws. With careful planning, trust funds can be used to make sure the disabled individual is provided for in the way the grantor intended.

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What is a trust?

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