Level 2: Trusts as an Ownership Vehicle

Question 1

Trusts

Answer 1

legal entity where control of some asset or property is transferred by a grantor (trustor) to a third party (trustee) to be held for the benefit of another (beneficiary)

Question 2

Trusts: Trustor

Answer 2

creator of the trust

Question 3

Trusts: Trustee

Answer 3

person entrusted to hold and manage the assets

Question 4

Trusts: Beneficiary

Answer 4

individual who ultimately receives the benefits or assets of the trust

Question 5

Trusts: Living Trusts

Answer 5

a trust established when a trustor is still alive. It is sometimes called an inter vivos trust

Question 6

Trusts: Testamentary Trusts

Answer 6

set up while the trustor is still alive, usually as part of their will documents, and then activates upon their death

Question 7

Trusts: Land Trusts

Answer 7

land is purchased to be held for a long period of time for the benefit of a named party

Question 8

Trusts Living Trusts: Revocable Trusts

Answer 8

trusts can be changed by the trustor at any time

Question 9

Trusts Living Trusts: Irrevocable Trusts

Answer 9

trusts can not be changed by the trustor once you put your property in an irrevocable trust