Blog Information

• Posted By : Mark Glendon
• Posted On : Apr 21, 2022
• Views : 156
• Category : General
• Description : A trust is a financial vehicle that allows assets to be stored for future disbursement. A grantor is the person who sets up the trust, and a beneficiary is the person who is named in the trust agreement as the entity who is to receive the assets. In between, however, is a trustee.

Overview

• A trust is a financial vehicle that allows assets to be stored for future disbursement. A grantor is the person who sets up the trust, and a beneficiary is the person who is named in the trust agreement as the entity who is to receive the assets. In between, however, is a trustee.
  
  

  A trustee is a person who is responsible for ensuring that the dictates of the trust are adhered to. The trustee is being “trusted” to hold onto the assets and to act as an independent party in the matter. In some cases, a trustee will be a friend or family member of the grantor, but other times, a completely independent party will serve as the trustee.
  
  

  What Duties Are Assigned to a Trustee?
  
  

  The duties of a trustee can vary, but there are some core components to trust agreements that pertain to most trustees. As mentioned above, the basic function of the trustee is to ensure that assets are transferred according to the grantor’s wishes through the trust.
  
  

  Additionally, other duties of a trustee may include handling legal documents and tax documents that are required as part of the trust. In this way, the trustee acts as the legal owner of the assets until the trust agreement is executed. Do you want to know about the duties of a trustee? Visit this website.
  
  

  What Duties Are Assigned to a Beneficiary?
  
  

  The beneficiary may have few or no duties in the agreement; however, this can vary based on the terms. A trust may be designed to only disperse assets in the event that a beneficiary qualifies according to the trust agreement.
  
  

  For example, a trust may be set up for a child while they are still young. Funds are placed into the trust over the years by the grantor.
  
  

  The trustee is only allowed to disperse funds when the beneficiary fulfills certain obligations set forth by the trust. In this example, perhaps the terms may include graduating from high school or college and holding a job for a specific number of years. Only after the beneficiary has met these qualifications can the trustee disperse the assets of the trust.
  
  

  Read a similar article about private wealth law firm NYC here at this page.