by Tom Olofsson, Attorney at Law, www.MyTrustLawyer.com (773) 905-1193

A trust is a relationship between three people, the grantor, the trustee, and the beneficiary.

The Grantor’s job is to set up the trust and put money and property into the trust. The Trustee’s job is to manage the money and property that is placed inside the trust. The Beneficiaries job is to sit back and get the benefits of the trust.

The Grantor sets up the trust and puts their assets into it. The Grantor then picks a trustee who will manage the assets for the benefit of the beneficiary.

My mother spent her birthday with my sister in Tucson, Arizona this year. I sent my sister a check to buy mom some flowers on her birthday.

In that situation I was the Grantor, my sister was the Trustee, and mom was the beneficiary. I picked my sister to go shopping because I knew she would do what I asked her to do.

Every trust, large or small, has a Grantor, a Trustee, and a Beneficiary.

With a Living Trust (a Living Trust is a trust you set up during your lifetime) you can be the Grantor, Trustee, and Beneficiary of your own trust. While you are able to manage your own money and property then you remain the Trustee. Your trust will have, written into it, special provisions, that provide for a time when you become ill or when you are no longer able to manage your money and assets.

Within your trust are the names of the people or professional trustees who will take over management for you. You name the people who will take care of your assets for you when you are unable to do it for yourself.