In the recent years the living trusts have become extremely popular and they are being widely used nowadays as well. The living trusts may be described as legal arrangements and there are several parties that are involved in a living trust.
On Living Trusts
The living trusts are a traditional way of the process known as estate planning. The living trusts are basically legal arrangements. They are created by attorneys, who are qualified to perform the said task. As per the legal arrangements a separate entity is created, which is called the living trust. A living trust is called so as the body is created when the holder of the estate is alive. It is different from a testamentary trust, which is created after the holder of the estate passes away.
Popularity of Living Trusts
The living trusts have grown in popularity over the years. They have continued to be essential parts of the process known as estate planning. They used to be the sole preserves of the people who were atop the economical ladder. However, the situation has changed at present.
Use of Living Trusts
The immense popularity of the living trusts has translated to increase in the uses. In fact it is one of the most often used modes of estate planning.
Parties of Living Trusts
There are a number of parties that are involved in a living trust – the grantor or the trustor, the beneficiaries and the trustees. The grantor or the trustor is the entity who creates the trust. Normally the holders of the estates or properties are called the grantors.
The beneficiaries are the people who are supposed to receive the assets once the grantors have passed away. The trustees are those people who are entrusted with the responsibility of looking after the assets of the trustor or grantor.
Last Updated on : 30th July 2013