A trust is created when the trustor, grantor, or settlor transfers property to the trustee, who will efficiently manage the property for the beneficiaries. A trust is one slice of a comprehensive estate plan, partnered with various other important documents, like a power of attorney, a healthcare power of attorney, and a will.
When creating your will, there are two steps you must complete. The first is generating a trust agreement. The grantor creates this legal document defining the trustee, the grantor, and the beneficiaries the estate, and outlines how the trust assets should be properly dispersed and administered. This step also includes determining how you want the trust assets and income allocated to each beneficiary, who you want to select as a beneficiary, and who you want to be named as a trustee.
The second step involves funding the trust. The grantor transfers assets to the trust. Unless the trust is funded, the agreement is worthless. This step is completed based on the nature of the property, like real estate and personal property.
How Long Does It Take to Set Up a Trust?
It usually takes a few days to a couple weeks to officially set up a functioning trust. However, if a lawyer has a hand in creating your trust, the time will fluctuate depending on when you can set up an appointment, how fast you can obtain the requested information, and the time it will take for the lawyer to actually create the trust agreement.
Get a Trustee Bond from Colonial Surety
Trustee bonds help safeguard the interests of the trust beneficiaries. Colonial Surety allows beneficiaries to obtain an ibond instantly online. Contact us today to learn more about trustee bonds and their benefits.