By the Estate Planning Attorneys at Smith & Garg, LLC, serving The Woodlands, Spring, Houston, Conroe, Humble, Kingwood, Tomball, Cypress, Huntsville, Westchase, Southwest, Sugar Land, West Oaks, Alief, Memorial, River Oaks, Stafford, Katy, and Missouri City.

WHAT IS A TRUST AND WHAT DOES IT DO?

A Trust is a vehicle whereby one person or entity holds and manages property for the benefit of another. The person or entity that holds the legal property interest is called the "Trustee." The person for whom the property is being held is called the "beneficiary" and the person establishing the trust is called the "grantor." A Trust can take one of two forms: Revocable or Irrevocable. Revocable Trusts may be changed or terminated by the grantor (also called the settlor) during his or her lifetime. An Irrevocable Trust, once established, cannot be terminated or altered. Revocable and Irrevocable Trusts that are established during the grantor’s life are called Inter Vivos Trusts.   A Trust created in a Will and designed to go into effect upon the testator’s death is called a Testamentary Trust. Once formed, and upon enactment, Trusts allow the Trustee to direct or control the assets held in the Trust. Trustees have a legal duty, referred to as a fiduciary duty, to make decisions, and act in good faith, regarding the Trust property.

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