Who Are the Parties in a Trust?
Creating a trust is a common part of estate planning for many residents in the Canton, Connecticut area. If you are considering a trust, it is important to have a clear understanding of who the parties are in a trust and what rights and responsibilities they have with regard to the trust. There are many different types of trusts in Connecticut, but there is common language among them. Accordingly, if you learn the terminology concerning the parties in one type of trust, you can have a general understanding of who the parties are (and what those classifications mean) in other types of trusts.
The following information clarifies the types of parties in various kinds of trusts in Connecticut. If you have additional questions, or if you want to find out more about creating a trust, you should get in touch with a Canton trust attorney today for assistance.
Settlor: The Person Who Creates a Trust
In Connecticut, the person who creates a trust is generally known as the “settlor.” This term can be especially confusing if you have discussed establishing a trust with a family member or friend in another state where different language and terminology are used. Many states use the term “grantor,” and some use the term “trustor.” While these terms all refer to the same thing, the term “settlor” is used most often in Connecticut (and is the term used in Connecticut probate law) to refer to a person who sets up a trust.
Beneficiary: The Person or Entity Who Benefits from a Trust
A “beneficiary” is a person or entity who benefits from a trust, and for whom a trust is created. Depending on the type of trust, a beneficiary may need to have certain characteristics (such as a close family member who is disabled for a Special Needs Trust (SNT), or a charitable organization for a charitable trust).
Trustee: The Person or Entity Who Administers the Trust
A “trustee” is a party responsible for administering a trust. The trustee has a fiduciary responsibility, which means that the trustee has a duty to manage the assets in the trust responsibly.
In Connecticut trusts, there may be multiple settlors, beneficiaries, and/or trustees. There are also many trusts in which the settlor can also serve as the trustee, and sometimes also as the beneficiary.
Contact a Canton Trusts Lawyer
When you are planning to create a trust as part of your estate plan, it is essential that you have an understanding of the parties relevant to the trust and the terminology that Connecticut law uses to describe them (including yourself). Once you are ready to create a trust as part of your estate plan, you should get in touch with an experienced Connecticut trusts attorney at the Law Office of Brian S. Karpe. We can help you to set up a revocable or an irrevocable trust, and we can discuss the various kinds of trusts that may be beneficial to you. Contact us today to learn more about how we can assist you.
Sources:
cga.ct.gov/2021/pub/chap_802c.htm
ctprobate.gov/Documents/User%20Guide%20-%20Understanding%20Trusts.pdf
