ESTABLISHING A TRUST FUND |
This Life Advice(r) pamphlet about Establishing a Trust Fund was produced by the MetLife Consumer Education Center and reviewed by the Division for Public Education of the American Bar Association and the Legal Services Corporation. Editorial services provided by Meredith Integrated Marketing. |
Table of Contents Benefits of Establishing a Trust |
People often associate trust funds only with the wealthy. But a trust fund ("trust") actually can be an effective financial tool for many people in many circumstances. A trust is a separate legal entity that holds property or assets of some kind for the benefit of a specific person, group of people or organization known as the beneficiary (beneficiaries). The person creating a trust is called the grantor, donor or settlor. When a trust is established, an individual or corporate entity is designated to oversee or manage the assets in the trust. This individual or entity is called a trustee. A trustee can be a professional with financial knowledge, a relative or loyal friend or a corporation. There are pluses and minuses to each type of trustee. An individual trustee may provide a more personal touch, but may die or move away. A corporate trustee may be less personal but provides experience, investment skills, permanence and impartiality. More than one trustee can be named by the grantor if he or she wishes. |
Reference Materials Plan Your Estate Winning the Wealth Game: How to Keep Your
Money in Your Family The American Bar Association Guide to
Wills and Estates The American Bar Association Family Legal
Guide Baby Boomer Retirement: 65 Simple Ways to
Protect Your Future (second edition) Pamphlets from the federal government The quarterly Consumer Information Center Catalog lists more than 200 helpful federal publications. For your free copy, write: Consumer Information Catalog, Pueblo, CO 81009, call 1-888/8-PUEBLO, or find the catalog on the Net (http://www.pueblo.gsa.gov). Internet Information If you're on the Net, check us out. |