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Trusts
COURTESY GARY DEWITT
DEWITT LAW FIRM, PLLC (479)717-6300
Trusts In General. Why a Trust?
Avoid probate
Protection from lawsuits
Protection from creditors
Control – now and later
Protection of Assets
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
Trusts In General. Definition.
A 3 party agreement
Grantor, Trustee, and Beneficiaries
Grantor puts stuff into trust
(possibly you)
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)
Trusts In General. Definition.
What a mouthful
Required
Grantor, Trustee, Beneficiaries,
Agreement, and stuff (the “res”)
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
Revocable Living Trust
You create the trust while living
You can revoke because it is
revocable
You can modify because it is
revocable
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
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
Choosing A Trustee
Carry out the express terms
Defend the trust
Invest the assets
Impartial among the beneficiaries
Choosing A Trustee
Must be loyal
May not delegate the responsibility
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

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Trusts

  • 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