What is a Living Trust ?
1. What is a Living Trust?
In a Living Trust, the trustee holds title to property for the benefit of the trust beneficiary. A trust document is created by a trustor or a settlor. His/her fiduciary duty is to transfer the personal and real properties in the trust.
2. What is a trustee?
The trustee’s main function is to manage the property in accordance with the instructions provided by the settlor, for the benefit of the beneficiaries.
3. Powers of a trustee
The trust document allows the trustee vast powers to manage the affairs of the trust, such as, power to sell/purchase, make investments, pay certain debts and expenses incurred in the administration of the trust and protect the assets of the trust. The trustee must avoid any conflict of interest with the beneficiaries and never use the trust property for personal benefit.
4. Successor Trustee
The trustor or the settlor nominates a successor trustee to run the affairs of the trust upon the death or incapacitation of the trustor of the settlor. Upon the death of the settlor, the successor trust becomes irrevocable, and the trustee has 60 days to give written notice to all beneficiaries of the trust as well as provide a copy of the trust to each heir. The successor trustee must follow all lawful trust instructions.
5. Trust Contest or Trust Litigation
Some of the basis for a trust contest or trust litigation include, but not limited to, coercion or undue pressure on the settlor into creating the trust, mental capacity of the settlor at the time of signing of the trust, or if someone else helped create the trust will benefit from the trust.
6. For any trust issues, contact the Law Office of Michael C. Maddux at 909-890-2350