In this first article in our upcoming series, we will discuss a trust and the type of assets you may transfer to a trust. Please stay tuned for more related articles coming soon and reach out to our team if you have any questions about estate and trust.
A trust is a legal agreement between two parties: the trustee and the trustor (sometimes called the settlor or grantor). The trustor is the person who establishes the trust and transfers assets into it. The trustee is the person or entity responsible for managing those assets according to the trustor’s wishes. Often the trustor will also be the trustee, or one of several trustees — until their death or resignation.
Similar to a will, a trust can have beneficiaries. Those beneficiaries maybe your spouse, children, other family members, close friends, or even a charitable organization. Those named as trust beneficiaries are entitled to receive assets from the trust, based on how you (the settlor) direct the trustee to distribute them.
Some types of assets you may transfer to a trust include:
- Real property, including homes, land, or investment real estate
- Deposit accounts held at banks and credit unions
- Investments, including stocks, bonds, and money market accounts
- Life insurance policies
- Business interests and assets
- Collectibles and antiques
Funding a trust occurs when you transfer assets into the trust and under the control of the trustee. A trust can offer many important planning benefits that are not included in a will.
Note: Any changes to your estate plan must be drafted by your attorney.
About KROST’s Estate and Gift, Trust, and Probate Services
Our estate planning team assists with the transition of family wealth and estate succession. Our team of experts has over 80 years of combined experience working with family-owned and privately held companies, as well as high-net-worth individuals. Our primary goal is to assist individuals and their attorneys to effectively transfer wealth while minimizing unnecessary estate, gift, and generation-skipping taxes. In addition, we can coordinate all of your Trust, probate, and estate planning needs to ensure a smooth transition while minimizing emotional, tax, and administrative burdens.
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About the Authors
Richard Umanoff, CPA, MBA
Richard Umanoff, CPA, MBA, is a Principal at KROST CPAs. Richard’s career spans over 40 years, with a concentration in taxation. His primary emphasis is estate and trust tax compliance, planning, estate administration, and probate court accounting. Richard currently serves in the role of trustee for numerous clients. » Full Bio
Douglas A. Venturelli, Esq.,
Tax, Sports & Entertainment
Douglas A. Venturelli, Esq., is a Principal at KROST. He has over 35 years of experience in Tax, Estate, and Business Services. His main focus is consulting with Entertainment, legal, Real Estate, and medical industry clients as well as managing many fiduciary and estate tax issues. » Full Bio