Becoming a trust.?

Question

What does it mean when you become a trust?What is the difference between a trust and a will?What are the benefits of becoming a trust?

Answer 1

If you have minor children (or other dependents) get a trust. It's much easier to transfer control of a trust to those who will assume parental responsibility. Technically speaking, my four-year-old owns my house, my retirement, and other large assets. Should both parents pass away while he is still a minor dependent, my mother will have immediate access to my finances to offset any expenses associated with my son. However, we still have a will - to clarify any transfer issues with the trust. Depending on the size of your estate - there may be tax benefits associated with a trust.

Answer 2

Someone cannot become a trust.

A trust is a legal entity that exists to own property -- the trust is managed by a trustee, who as legal control over the property -- but the trusts exists for the benefit of someone else (the beneficiary) who gets the benefits of that property

A will is a document that describes how property should be distributed after a person dies.

A will can create a trust (called a testamentary trust) to handle some of that property distribution -- but otherwise, wills and trusts are entirely distinct and independent of each other.