Log in

In a trust you can trust

If you think trusts are only for rich people, think again.

Generally speaking, a trust is simply an arrangement whereby one person agrees to hold property for the benefit of another. So, a trust is made to order if you are looking to reduce your assets/income or estate tax liabilities, avoid probate, or issue money to your beneficiaries in increments – instead of lump sums – in the event of your death.

Step one is to understand the terminology used in the trust agreement, which is the governing document that lays out the rules that you want executed for the property held in trust for your beneficiaries.


The trustor – also commonly known as the settlor or grantor – is typically the person establishing the trust and the one with the assets. The beneficiary is the one that benefits from the trust. The trustee is the person, bank, attorney or corporation in charge of the trust. A good way to remember the trustee's role is to remember that the trustor places all of his trust in the trustee to act at all times in the best interest of the beneficiaries. This person has to be knowledgeable of rules and desires of the trustor since they are responsible for the management of the trust. Trust property is what the trustor places in the trust.

Trust Property, also known as corpus or res, can include cash from bank accounts or insurance policies, stock, real estate, and/or any other property that the trustor wishes to place in the trust. Once property has been placed in the trust, it no longer belongs to the trustor. This means that the trustor no longer pays income tax on the money made from the assets and is safe from bankruptcy, creditors, divorce, and tax liabilities depending on the timing of the creation of the trust.

There are different types of trusts depending upon the objective and purpose of the trust.

Revocable trust

A revocable trust is an instrument that allows the trustor the opportunity to change his or her mind and make changes to the trust or cancel it all together after it has been created.

Irrevocable trust

An irrevocable trust locks the trustor in and does not allow for changes or the cancellation of the trust unless special circumstances present themselves.

Living trust

A living trust is an instrument that is set up during the trustor's life. This is different from a living will, which provides instruction regarding life support in the event of certain death. The trust document names the trust, the trustee and one or more successor trustees, directs the administration of the trust for the life of the trust and the disposition of the assets and income upon the termination of the trust. If done properly, this trust can help to avoid probate.

Testamentary trust

A trust that is included in a will and takes effect upon death is called a testamentary trust. It is revocable prior to death simply by adjusting the will. But upon death it becomes irrevocable because the person that could have revoked it is dead. This one is not as advantageous and does not necessarily avoid probate. Because probate is not avoided, it is not as private as the living trust.

Kiss trust

A kiss trust is a low-cost savings plan for kids that can only be used for the intended purpose or distributed at the age you specify. This trust can be used for a wide variety of purposes, including educational or home purchases. This is a favorite amongst those with a little money to share because the cost to establish is relatively low.

Purpose-based trusts

The types of trusts based on purposes are varied and quite long. The list includes A/B trusts, asset protection trusts or credit shelter trust, by-pass trusts, various types of charitable trusts, Crummey trusts, dynasty trusts, generation skipping trusts, grantor trusts, life insurance trusts, grantor retained income trusts, qualified personal residence trusts, resulting trusts, special needs trusts, spendthrift trusts, and Totten trusts.

There is a trust to fit most any need that a person wishing to plan may have. Under no circumstances should you attempt to create a trust on your own. The worst outcome possible is that you create a document that is later found to be invalid and your wishes are not carried out. Reach out to an attorney and seek advice. Ultimately, you either pay now or pay later.

(Contact Carlee McCullough, Esq., at 5308 Cottonwood Road, Suite 1A, Memphis, TN 38118, or email her at This email address is being protected from spambots. You need JavaScript enabled to view it. .)


0 #15 learn singing online 2014-11-14 02:46
Keep on writing, great job!
0 #14 rug and carpet 2014-09-14 07:50
Hey there jսst wanted to give you a brief heads up and let yyou know a few of the pictuгes aren't loading
correctly. I'm not suгe why but I think its a linkingg issue.
I've tried it in two diffewrent browsers and both shߋա tɦe same гesults.
0 #13 Sheri 2014-09-11 19:56
Wonderful post but I was wanting to know if yoou could write a litte more on this topic?
I'd bbe very thankful if you could elaborate a little bit
further. Kudos!
0 #12 Bettie 2014-08-27 06:09
To increase the calorie burning (and fun) potential of this chore, put on dance music and add a
few hip swivels or shimmies while you work. com offers the professional carpet cleaning los angeles  services in America.
t get thoroughly clean with just vacuuming, roll the rug up and take it outside.
0 #11 Usana 2014-07-20 21:44
What does attraction have to do with my Usana business'.
Although there are advantages to being publicly traded my
preference is to work with a privately held company. t need to miss out on any important events in your loved ones.
0 #10 symptoms of diabetes 2014-07-05 15:18
Magnificent goods from you, man. I have understand
your stuff previous to and you are just extremely magnificent.
I really like what you've acquired here, really like what you're saying and
the way in which you say it. You make it enjoyable and you still take care of to keep
it sensible. I can't wait to read far more from you.
This is really a tremendous site. www.diabetes.adsboards.com
0 #9 Zack 2014-05-20 05:55
Just want to say your article is as astonishing.

The clearness in your post is simply spectacular and i can assume you're an expert oon this subject.

Fine with your permission let me to grab your feed to keep up to date with forthcoming post.
Thanks a million and pleasee continue the gratifying work.

Here is my weblog :: foot and hand care; Zack: http://www.youtube.com/watch?v=LAhibePEeRo,
0 #8 JimBo 2014-03-24 18:33
Just signed up for Kiss Trust

More investment options and less than 1/2 the cost.
0 #7 JimBo 2014-03-24 18:32
Just signed up for Kiss Trust.

I compared to Vanguard trust services.

Kiss Trust has more investment options and less then half the cost of Vanguard.
0 #6 Tax-Man Bart 2014-03-11 13:50

We just added another child to the family and started Kiss Trust for her.

They have reduced the price to $49 to set the trust up and the New Basic Plan has reduced the trustee fee to zero.

I think best deal in town.
0 #5 Tax-Man Bart 2013-03-03 14:14

Kiss Trust is not a fund - they do offer a whole list of the big national mutual funds you can choose from.

They just increased the list to 5,000 funds. You should be able to find what you want with that many choices.
0 #4 MaryB 2013-03-03 08:44
I saw some other posts asking if Kiss Trust is a mutual fund.

The Kiss Trust website says they are a trust company and not a mutual fund. They offer thousands of mutual funds as investment choices Like Fidelity, Vanguard and American funds.

Anyone have more information?

Add comment

Security code