Trusts {trust fund}| are less expensive, more flexible, and less hard to manage than guardianship that state most likely creates for estate after death, until children reach majority. Legal title to property can transfer to another person {trustee, fund} or institution {trust company}, which holds, invests, and administers property for beneficiary named by original owner. States limit time that estates can be in trust. At designated times, trusts distribute property.
People can create trusts {inter vivos trust} {living trust} while they live. Trusts can be revocable or irrevocable. Only agreement of all parties can amend or revoke it. Irrevocable living trusts are not parts of estates. Neither living trust type goes through probate.
Irrevocable trusts {reversionary trust} can be in effect more than ten years or until beneficiary's death, after which property returns to original owner. If trust creator dies, it is like an irrevocable trust. This trust type can save income tax, if beneficiary is in a lower tax bracket.
People can create trusts {testamentary trust} in wills, to begin at testator's death. This trust is part of estate and is subject to estate tax.
trust beneficiary {cestui qui trust}.
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Date Modified: 2022.0225