Trusts are fiduciary arrangements that allow a third party (also known as a trustee) to hold assets on behalf of a beneficiary. However, there are different types of trusts, and it's important to understand the difference between a revocable and irrevocable trust. This distinction is vital as it can have significant implications for how assets are managed, controlled, and taxed. Understanding Revocable Trusts A revocable trust is often also called a living trust. It is a legal entity created to hold ownership of an individual's assets. What makes a revocable trust stand out is its flexibility. The creator of the [...]

A trust is a legal agreement between two or more parties that grants one party, or trustee, specified assets while the beneficiary, or the person for whom the trust is established, retains ownership of said assets. If you’ve ever wondered how to set up a trust or how they work, we explain below in detail how to set up a trust, from creation to distribution. The five-step process: Creation Tax Recognition Funding Administration Distributions 1. Creation The steps in creating a trust are: Identifying the person who establishes the trust, usually called the “Grantor.” Identifying an appropriate trustee. A Trustee [...]