What is a trust agreement?

A trust agreement is a legal document that establishes how property, money, or other assets will be managed and distributed. In Pennsylvania, trust agreements are commonly used in the area of trusts and estate law. When creating a trust agreement, the grantor, or person creating the trust, will choose a trustee to manage the trust. The trustee is responsible for managing the trust assets, making sure that the trust is properly administered, and making sure that the beneficiaries of the trust receive the assets as directed by the grantor. The trust agreement typically includes instructions on how the trust property will be managed. Trust assets can be managed for the benefit of the grantor’s heirs or directed to charitable organizations. A trust agreement will also address how the trust assets will be distributed and who will receive them. Additionally, the trust agreement will state how the trust is to be funded, which assets are to be included, and if the trust can be used for any other purpose. The trust agreement is a legal document and should be reviewed by a qualified attorney. It is important to ensure the trust agreement is properly prepared and executed to avoid any disputes in the future. It is also important to update the trust agreement as needed to keep up with changes in the law.

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