What is a trust account and how does it work?

A trust account is a financial arrangement by which one person, known as the trustee, holds legal title to the property of another person, known as the beneficiary, in order to manage the assets in line with the beneficiary’s wishes. This is commonly used in Estate Planning Law in Maryland. In a trust account, the trustee is granted the legal authority to manage the assets held in the trust, and the beneficiary has a degree of control over how the assets are managed based on how the trust is set up. Generally, the trustee has a fiduciary duty to the beneficiary, meaning they must always act in the beneficiary’s best interest. Most trust accounts are revocable, meaning the beneficiary can make changes to the trust or revoke it altogether. The trustee also has certain responsibilities and must abide by the provisions of the trust documents. These can include paying the beneficiary’s bills, investing the trust assets, or distributing funds to the beneficiary. Trust accounts can be used for a variety of reasons, such as protecting assets from creditors, reducing taxes, and providing for beneficiaries upon the death of the grantor. In addition, trusts can be used to manage a person’s assets when they become incapacitated. All of these factors make trust accounts a valuable asset in Estate Planning Law in Maryland. By setting up a trust account, you can ensure that your beneficiaries’ interests are always protected and your wishes are respected.

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What is a trust account and how does it work?

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