TRUST AGREEMENT- ShortSale,
Benefits of creating an agreement while creating a trust
Trust agreement is the agreement made to transfer the ownership rights of the grantor to the trustee who is managing the trust in order to benefit someone other than the beneficiary (grantor). This legal document includes why the trust was being started and its purpose. Most importantly, this includes the terms and conditions on how to manage the assets of the trust and how the profits has to be shared with the beneficiaries. Generally, this legal agreement stands as a concrete proof and helps you to clear the disputes that arise in the future between the beneficiaries and the trustee. Most importantly, this agreement can be produced in the court, in case if there is any legal dispute filed against the trust.
Ideally, trust agreement is very integral part while creating the trust and this includes all the instructions on how you would like to run the trust. Most importantly, this includes how to manage the assets and how to distribute them after your death. Generally, this agreement includes the trustee name, who is actually the in charge of the trust, beneficiary names to whom the assets has to be distributed after your death.
Here are a few benefits the creator of the trust can reap by creating this agreement
Elude probate: The key benefit of creating this agreement is to avert probate and divide the assets in private. Usually, without a trust, the court takes up the responsibility of sharing the assets to the beneficiaries and then it becomes probate. Basically, the distribution of the assets by the court takes a lot of time and moreover, it incurs huge cost for the beneficiaries, i.e. they should pay for the attorney and other legal fees.
Various options: The trust agreement has all the terms and conditions pertained to the type of trust you are running. Ideally, there are two types of trusts, one is revocable, it means that this trust can change its name, terminate or get dissolved, but whereas irrevocable trust cannot be terminated.
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