What is the purpose of a trust indenture?
The purpose of a trust indenture is to create a trust agreement between a grantor (person setting up the trust) and a trustee (person managing the trust). A trust indenture is a legal document that outlines the rules and conditions for the trust. It typically outlines the duties and responsibilities of both the grantor and the trustee, as well as the terms of the trust. This document also outlines the assets that can be placed in the trust, the rights of any beneficiaries, and the obligations of the trustee. In Washington, trust indentures are commonly used to transfer assets to future generations. A trust indenture allows the grantor to determine how assets that are placed in the trust will be distributed after their death. This document will also specify how long the trust will remain in effect and who will be appointed as the trustee. Trust indentures can also be used when the grantor wishes to provide for a minor or disabled person. In this case, the trust indenture will name someone to manage the assets until the beneficiary reaches a certain age or is able to manage the assets on their own. The trust indenture will also outline the rights of beneficiaries and the terms of the trust, such as when money from the trust can be distributed. In summary, trust indentures are a legal document used by grantors to create a trust agreement, and to determine the rules for how assets in the trust will be managed and distributed. This document is particularly useful in Washington when setting up a trust for a minor or disabled person.
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