People are often confused about the legal definition of a trust and how it works within the legal system. A trust refers to property given to a trustee to manage for the benefit of another person who is named within an official legal document.  In most cases the beneficiary receives interest and dividends on the trust assets for a predetermined amount of time.  

 

Under the conditions of a trust, an agreement is made where one person transfers the title they hold to a specific property to another person who agrees to manage it for a third party. This is a beneficial process as the party who has transferred the title (the beneficiary) stands to greatly benefit from having another person oversee it for them.

 

An individual may control the distribution of their property, which can be used while they are living or after their death, by establishing terms and conditions within a written trust. There are many different purposes, functions and types of trusts. A trust may be intended for the benefit of the person who created the trust, it can be for their surviving spouse, for minor children, or for a charity. 

 

Generally, trusts are created during a person’s life in anticipation of their death. This can be done early on in life or later in life, and modifications can be made as time proceeds as long as a qualified real estate lawyer is involved to help. Trusts are the perfect way to ensure that the plans you have for your money, property and any other assets, are successfully carried out once you have passed and that they are followed through in the way you originally desired.

 

The individual who creates a trust is the settlor.  The person who manages the property for another person’s benefit is called the trustee. The beneficiary or beneficiaries are the individual(s) who benefit from the trust. A trustee has the duty, known as a fiduciary duty, to act in good faith and with strict honesty in administering the trust and serving the interests of the trust beneficiaries.

 

 A breach of the trustee’s duty, can result in negative ramifications including court orders and even criminal charges. Therefore, it is very important that a legal professional is involved in every trust process in order to ensure that no unintentional breaches are made.

Whenever you are assuming a great legal responsibility, it is in your best interests to consult with an attorney. This is especially true when it comes to matters of estate planning and trust administration. In these instances, you will be expected to oversee the assets that are held within a trust.  

 

It is therefore up to the trust administrator to oversee the trust, including the distribution of assets, etc. as directed by the creator of the original trust. Because this is a complicated process and one that is highly personal in nature, it is one that must be handled with the utmost care and attention. Therefore, trust administration should only be undertaken with the legal guidance of a professional and experienced attorney.

 

Kayser Law Group found online at https://www.kayserlawgroup.com, 714-984-2001, or at the Kayser Law Group physical office located at 1407 North Batavia Street, Suite 103, Orange, CA 92867.  

 

Kayser Law Group is dedicated to helping the residents of Orange County work through the conservatorship process safely and expeditiously.

 

Get peace of mind today and contact Kayser Law Group to handle your conservatorship, guardianship, probate, trust, real estate law, and estate planning needs. https://www.kayserlawgroup.com