What is an inheritance trust?

An inheritance trust is a legal arrangement which is used in wills and probate law in Virginia to control how assets are passed on after someone has passed away. The deceased person, knows as the grantor, makes a trust document which includes instructions on how and when their assets will be distributed to their inheritors. The trust document will name a trustee, which is someone who is responsible for managing the assets in the trust and carrying out the wishes of the grantor. The trustee has a fiduciary duty, which means they must use the trust assets in the best interests of the people who have been named as beneficiaries. The trust will also name one or more beneficiaries, who are the people who will receive the assets once the trust has been completed. The grantor can name anyone they like as the beneficiaries, and the document can also include instructions on how the beneficiary will receive their inheritance. The trust document can also include instructions on how the trustee or beneficiary should use the assets. For example, it could include directions that any money received be used to pay college tuition, or that the assets be invested and the money be used for a certain purpose. In Virginia, an inheritance trust can be a powerful tool in controlling how assets are passed on after the grantor has passed away.

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