What is a trust?

A trust is a legal arrangement used to manage property and assets. In Virginia, trusts and estates law is governed by the Virginia Code. A trust is created when a person, called the settlor or grantor, transfers control of their property or assets to another person, called the trustee. The trust establishes rules that the trustee is legally obligated to follow when managing the trust’s property. These rules can include distributing the trust’s assets to the beneficiaries, investing the trust’s money, and making sure the trust complies with all laws and regulations. Trusts are used for a variety of purposes, such as asset protection and tax avoidance. Other uses include providing for minor children and ensuring that assets pass to intended beneficiaries. Trusts can also be used to direct where your property and assets will be distributed when you pass away. Trusts can be revocable or irrevocable. Revocable trusts are more common and give the grantor the power to modify or revoke the trust at any time. Irrevocable trusts are much harder to modify and are often used for asset protection. Trusts can be complicated, so it is important to consult with a knowledgeable attorney to discuss the best estate planning strategy for your particular situation.

Related FAQs

What are the trusts for an estate plan?
What are the types of trusts?
What is a living trust?
What is a trust distribution?
What is a pour-over will?
What is a living will?
What is trust planning?
What is the tax treatment of trusts?
Can I set up a trust without legal help?
What is an estate plan?

What is a trust?

Related FAQs

Related Blog Posts