How do I fund a trust?

In New Hampshire, there are several ways to fund a trust. Generally, a trust is created when an individual, known as the Grantor, transfers their property to another individual, known as the Trustee. The Trustee then holds and manages the property for the benefit of a designated beneficiary. To fund a trust, the Grantor must first transfer ownership of the property to the Trustee. The property can be transferred in a variety of ways, such as through deed or outright gift. Other common ways to fund a trust include having the Grantor name the trust as the beneficiary of a life insurance policy or retirement plan, or transferring the assets of an existing business to the trust. The Grantor should also create a trust agreement. This document outlines the terms and conditions of the trust, including how the trust property will be used and managed. Additionally, the agreement should explain how the trust assets are to be distributed when the trust has been fully funded. Trusts require a great deal of planning, so it’s important to consult with an experienced trust and estates attorney to ensure that the trust is properly funded and that its terms are legally enforceable. An attorney can help ensure that the trust is established correctly and that it meets the needs of the Grantor and any beneficiaries.

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