What is a trust?

A trust is a legal agreement that allows a person (the grantor) to give their property or assets to another person or organization (the trustee) to manage or distribute for the benefit of someone else (the beneficiary). In Washington, trusts are commonly used in disability planning law to provide financial support and benefits to people with disabilities. When setting up a trust, the grantor must create a trust document that outlines the specific terms of the trust. The grantor also specifies who will manage the trust (the trustee) and how the trust should be managed. The grantor must also identify a beneficiary, and specify how the trust should be used for the beneficiary’s benefit. The trust document also indicates if the trust will be revocable or irrevocable, or if it will be set up to provide tax benefits. When the grantor funds the trust with cash, investments, or other assets, the trustee must manage the funds according to the trust document and ensure that the trust is being used for the benefit of the beneficiary. If the terms of the trust are set up correctly, the beneficiary can receive financial assistance for housing, special needs, healthcare, and other needs. The trust can also be set up to provide the beneficiary with funds after the grantor has passed away. This allows the grantor to provide for the beneficiary even after they are gone. A trust can be a powerful tool in disability planning law, ensuring the beneficiary’s financial security, even in the event of the grantor’s death.

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What is a trust?

What is a trust?

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