What are the requirements for establishing a trust?
In West Virginia, establishing a trust requires several steps. First, the person creating the trust is known as the trustor or settlor. They must state their wishes in a written document called a trust agreement or declaration of trust. This document should include the purpose of the trust, who the recipients are (the beneficiaries), who the trustee is (the person in charge of administering the trust, such as a lawyer or bank) and what assets will be placed in the trust. The trustor can also name a successor trustee, who will take over when the original trustee is unable to fulfill their duties. Next, the trustor must transfer the assets they intend to include in the trust from their personal ownership into the trust’s name. Depending on the assets, this may require a separate transfer document or a deed. The trustor should also be sure to name a guardian for the trust, someone who will look after the interests of the trustor’s children. Lastly, the trustor should arrange for the trust to be funded with enough assets to meet its purpose. This may involve transferring real estate, stocks, bonds, or other investments, or it may involve setting up income-generating accounts. The trustor should also include instructions for how the trust is to be managed, and how and when the trust will be terminated. Once all of these steps are complete, the trust is established and ready for use.
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