When you hear the word “trust” how does it make you feel? Do you get a little nervous and start questioning the intricacies of this complex topic? Well, I’m here to tell you, it’s not as complicated of a concept as you might think.
Let me break it down for you. There are three parties to every trust. Period. No matter how convoluted or straightforward the trust is.
The first party is the grantor – or settlor – this is the person/persons contributing property into the trust.
The second party is the trustee. These guys hold legal title to the trust. Their job is to administer the trust and to make sure the trust instrument (or trust document) is being followed.
The third party is the beneficiary and just like their name implies, they have beneficial ownership of the trust. They receive the benefit from the assets of the trust.
Once you understand these three parties to a trust you are head and shoulders above the rest because every trust your deal with will ALWAYS have these three elements.