The person who creates and funds a trust is referred to as the Grantor. The person (or organization) who manages the trust assets and makes distributions to the trust beneficiaries is known as the Trustee.
If the grantor established a living trust (also known as a revocable trust), he/she is permitted to be a trustee of that trust. A grantor may maintain control over the assets in a living trust and may continue to make changes to the trust assets as well as to the beneficiaries. A grantor does not have to give up rights of ownership and control of a living trust so s/he may be the Trustee of the living trust.
On the other hand, if the grantor creates an irrevocable trust s/he cannot be the trustee of that trust. An irrevocable trust, one that cannot be altered in any way once it is executed nor change the beneficiaries, is typically not considered part of the taxable estate of the grantor because the grantor gives up all incidents of ownership and control when creating the trust.
A grantor of an irrevocable trust may however receive income from the trust. Even though the irrevocable trust may not be changed ,a grantor may provide for his/her own needs from that trust. This does not change the incidents of ownership because the grantor is not allowed to make changes to the terms of the trust.
Getting Legal Help
Experienced Florida Estate Planning Attorney Maura Curran can help you understand all your options for your individual goals based on your individual budget and estate. She can help you create an estate plan which makes estate administration easier for your loved ones and your personal representative. Contact us today at561.935.9763begin_of_the_skype_highlighting561.935.9763end_of_the_skype_highlightingand toll free855.873.7268begin_of_the_skype_highlighting855.873.7268end_of_the_skype_highlighting.