Description and Definition of a trust. http://www.dewittlawar.com Northwest Arkansas Estate Planning Attorney Gary DeWitt helps everybody in estate and life planning for living, protecting, and passing. Gary offers multiple services to accomplish your plan including: estate planning, wills, trusts, power of attorney, medical power of attorney, general small business law, long term care, nursing home, Medicaid, charitable planning, charitable giving, special needs planning, disability planning, Medicaid emergency planning, and general asset protection. Serving all of Northwest Arkansas including Bella Vista, Bentonville, Rogers, Lowell, Springdale, Centerton, Gravette, Fayetteville, & Farmington.

1. Trusts
COURTESY GARY DEWITT
DEWITT LAW FIRM, PLLC (479)717-6300

2. Trusts In General. Why a Trust?
Avoid probate
Protection from lawsuits
Protection from creditors
Control – now and later
Protection of Assets

3. Trusts In General. Why a Trust?
Active management of your assets
during incapacity
Can control (“strings”) the assets even
after you are gone
Can name successors
Somebody to advocate for your finances

4. Trusts In General. Definition.
A 3 party agreement
Grantor, Trustee, and Beneficiaries
Grantor puts stuff into trust
(possibly you)

5. Trusts In General. Definition.
A 3 party agreement
To be managed by the Trustee
(possibly you)
For the benefit of the Beneficiaries
(You, your family, your loved ones)

6. Trusts In General. Definition.
What a mouthful
Required
Grantor, Trustee, Beneficiaries,
Agreement, and stuff (the “res”)

7. Trusts In General. Definition.
It’s a bucket you put stuff into
You also put a set of instructions in
the bucket for the “trustee” to follow
You can lock the lid to the bucket

8. Revocable Living Trust
You create the trust while living
You can revoke because it is
revocable
You can modify because it is
revocable

9. Revocable Living Trust
You put stuff into it, so you are the
Grantor
You manage the stuff, so you are the
Trustee
You (and possibly others) get the
benefit from the stuff, so you are the
Beneficiary

10. Revocable Living Trust
What does this mean?
You put stuff in at will
You take stuff out at will
You can modify the trust agreement at
will
You can revoke the trust (revocable)
You are in full control

11. Choosing A Trustee
Carry out the express terms
Defend the trust
Invest the assets
Impartial among the beneficiaries

12. Choosing A Trustee
Must be loyal
May not delegate the responsibility

13. Sample
 Children move away from home and get heavily
involved in drug culture
 Mother changes her Trust to withhold money until
they are clean and sober
 Children challenge Mom’s decision in court
 Judge rules in favor of Mom. It’s her money. It’s her
decision.
 She protected her children from themselves.
 Trusts are solid in Courts of Law