It is not uncommon for a property to be held in “Trust” because holding a property in Trust, rather than as an individual, can provide certain benefits.
A “Trust” is created to hold assets for the benefit of certain persons or entities. The “Trustor” is the person who creates a Trust. The “Trustee” is the person that has been authorized by a Trust to hold and manage property for the benefit of a beneficiary. A “Revocable Trust” is when the Trustor retains the power to revoke the Trust and an “Irrevocable Trust” is a Trust that cannot be changed at any time.
A “Living Trust” is set up during the lifetime of a person to distribute money or property to another person or organization. This Trust has a duration that is deemed at the Trust’s creation and can entail the distribution of assets to the beneficiary during or after the Trustor’s lifetime. This is also known as an Inter-Vivos Trust. One advantage of a Living Trust, as opposed to a Will, is that Probate may not be necessary.
A “Testamentary Trust” is created by the terms of a Will to manage assets given to the beneficiaries. It is the opposite of a Living or Inter-Vivos Trust because it goes into effect upon the death of the Trustor.
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