How do I set up a trust?

Setting up a trust in Virginia requires several steps. First, the person setting up the trust, the “grantor,” creates a trust document outlining the details of the trust, such as the name of the trust, the purpose, who the assets should be distributed to and when, and who the trustee is. The trustee is the person designated to manage the trust assets. Next, the grantor must fund the trust with assets. These assets can be anything of value, such as money, stocks, real estate, or something else. The grantor can give title of any of these assets to the trustee, or the grantor can assign the beneficiaries of the trust to receive the assets when the grantor passes away. The grantor must also decide on the type of trust that is being set up. There are two main types: revocable trusts and irrevocable trusts. A revocable trust can be changed or ended by the grantor at any time. An irrevocable trust cannot be changed or ended and is subject to tax laws. Finally, the trust document must be signed by the grantor and a witness, and it must be filed with the local court. Once the trust is established, the trustee is responsible for managing the assets and distributing them to the beneficiaries according to the terms set out in the trust document.

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