What a Trust Contains

There are several common elements that every trust contains:

• Trustor/Settlor/Grantor - The person creating the trust.
• Trustee - entity chosen to manage the trust, such as American Trust Center.
• Beneficiary or Beneficiaries - Individuals or entities that will receive the income and property in the trust, such as children, charities or institutions.
• Trust Property - Whatever is transferred to the trustee, includes money, securities, land, real estate, and automobiles.
• Trust terms - The direction and authority the person creating the Trust, gives the Trustee regarding how the property in the Trust is to be managed and distributed.

Types of Trust

Central to most estate plans is a trust. Several types of trusts are available, depending on your current circumstances and goals:

• Revocable Living Trust - For a person who wants to assure the property in the Trust is well managed for himself or others they designate, even after they cannot or do not want to manage it. They want the property to pass with the least amount of cost and procedure (no probate), but they want the right to change the Trust from time to time if they desire.
• Testamentary Trust - For the person who wants money or other property set aside after their death for use and distribution as they determine while they are alive (these trusts are usually in their wills).
• Charitable Trust - For the person who wants to benefit a charity, obtain a income tax deduction, reduce the size of their estate but still receive payments from the property given to the charity, during their lifetime or for a specific period of time.
• Irrevocable Trust - For the person who wants to remove the property from their estate for Estate Tax purposes, but wants it used and distributed for purposes they direct (example: life insurance proceeds, for spouse, children or grandchildren's education)