Declaration Of Trust Vs Living Trust

A living trust is a legal entity created by individuals to hold and own their assets after they transfer them into the trust s ownership.

Declaration of trust vs living trust. I help a client set up their new revocable living trust. A basic living trust isn t much more complicated than a will and you probably won t need to hire a lawyer. The declaration of trust is your trust. You name yourself as trustee the person in charge of the trust property.

With a good self help book or software program you can create a valid declaration of trust the document that creates a trust yourself. A declaration of trust or nominee declaration appoints a trustee to oversee assets for the benefit of another person or people. In that signing meeting among the papers signed by the client is an instruction letter to their bank telling the bank all it needs to know about the trust how to retitle the bank account etc. A trust that becomes effective during the grantor s lifetime is an inter vivos trust which most of us know as a living trust the term inter vivos is a latin term meaning during life most living trusts are created with a written document referred to as a declaration of trust or trust agreement.

In addition to who any conditions for when the estate is to be distributed must also be included in the declaration of trust. With all of that said you should be aware that the term living trust can also be used to describe an irrevocable trust that is created while you are alive and kicking therefore making it an irrevocable living trust it is in contrast to a testamentary trust which is a trust that goes into effect after the death of the person who has created the. The certificate of trust is not needed but can help keep things private and provide a easier way to open bank or stock accounts. If you and your spouse create a trust together you will be co trustees.

I then send that letter to the bank along with a copy of the utah code 75 7 1013 compliant. Further infromation must be included regarding who is to receive distribution of the estate upon the death of the grantor. My comments are not intended to establish an attorney client relationship are not confidential and are not intended to constitute legal advice. To create a basic living trust you make a document called a declaration of trust which is similar to a will.

A trust in which the terms can be changed at any time. The declaration also describes the assets that are to be held in.