What is a trust agreement?

A trust agreement is a legal contract that is used to create a trust. It is a way for a person, known as a settlor or grantor, to transfer property to someone else (called a beneficiary) for their benefit. The trust agreement outlines the rights and responsibilities of the settlor, beneficiary, and any other parties involved in the trust. In Oregon, trusts are regulated by a variety of different state laws. A trust agreement must be in writing to be valid. It will outline the purpose of the trust, how it will be managed, who the beneficiaries are, and any other specific instructions the settlor provides. The trust agreement also outlines how assets in the trust will be distributed to the beneficiaries. Trust agreements can be used to create revocable trusts or irrevocable trusts. A revocable trust is one where the settlor can change or terminate the trust while they are still alive. An irrevocable trust is one where the settlor cannot make changes or terminate the trust without court approval. The trust agreement will specify which type of trust is being created. Trusts are an important part of Oregon estate planning. A trust agreement allows a settlor to control how their assets are managed and distributed after they have passed away. This ensures that their wishes are followed and that their assets are handled according to their desires.

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