subject: Certainties of a Living Trust [print this page] Certainties of a Living Trust Certainties of a Living Trust
A living trust is quite similar to a will. Like a will, you can name specific beneficiaries or heir/s to your property and assets after your death. But unlike a will, a trust can already benefit you while you are still alive. There is also the freedom to create a joint living trust as well, which is, basically, the assets of husband and wife combined together in a single trust governed by a single trust document. But, like a will, creating a trust also requires certain requirements and formalities.
You must first clearly state the intention of your trust why you are creating a trust and the goals and intentions with it. The subject of your trust must be clearly indentified as well. General descriptions of your pieces of property are abstract, may be tangible or intangible, and may be in the form of cash, real estate, shares, and the like, so it is wise to describe the precise extent of the property you wish to be included in your trust to avoid any confusion. Replace words that may be interpreted several ways and clearly specify the pieces of property.
And not only should the property and the intention be specified, but the beneficiaries of your trust, as well. They must be clearly identified, again, to avoid misunderstanding. Beneficiaries may include future children or grandchildren, etc. (basically people who may have not been born yet at the time the trust was created), and may also include organizations for charity, not just certain individuals. The trustees may choose beneficiaries in some cases but the creator of the trust known as the settlor has the complete liberty to name beneficiaries on his/her own. It is wise to specify them as clearly as possible.
