Those who own property might want to consider talking to a professional legal expert about issues involved in establishing a trust. Trust Administration is a critical component in this aspect of Estate Planning.
Splitting Ownership
A trust can split ownership of legal property. This applies to either real or personal property. The creator of the trust defines how assets are to be distributed and who benefits during his or her lifetime. After death, then the person responsible for Trust Administration oversees asset distribution. This is done according to the creator’s wishes. The trustee must protect the assets of the trust as part of his or her duties.
Decisions about Rights and Vesting
Rights of property ownership are an important aspect of trusts. Examples of this are rights of possession, use, ability to sell or transfer property, and how wills can delineate who receives the property when the owner dies.
Key to determining who has the right of possession is discovering vested interests for each of the beneficiaries. Vesting can be a fixed interest in trust assets or a contingent interest. A contingent interest means a type of potential benefit that may happen if certain specific circumstances occur. Trust beneficiaries who have been granted vested rights usually have fixed interests in the trust assets.
There is a lot of case law involved in the area of such rights. It is best to find professional help with the intricacies of setting up trusts through proper estate planning. Unsworth LaPlante, PLLC in Vermont can help you best decide how to vest beneficiaries, including which rights and their limitations.
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