The person(s) designated in the trust as benefiting in some way from the trust, EXCEPT for the trustee or other individual whose benefit consists only of reasonable fees or payments for managing or administering the trust. The beneficiary can be the grantor, another person or persons, or a combination.
Also called the trust principal, it is the income and/or resources that form the main body of the trust. Resources or income in the trust corpus may be available to a person but the person no longer owns them.
Also called the trustor or settlor, is the person or entity which creates or establishes the trust.
One which cannot be revoked in any way after it is established by the grantor or his or her representative.
LEGAL INSTRUMENT OR DEVICE SIMILAR TO A TRUST
Any instrument that exhibits the general characteristics of a trust. This can include, but is not limited to, escrow accounts, investment accounts, pension funds and other similar devices managed by an individual or entity with fiduciary obligations.
PAYMENT FROM A TRUST
A payment from a trust includes any disbursement from the trust corpus or from income generated by the trust, including but not limited to cash and other liquid items that are easily convertible to cash, personal property, real property, or the right to use and occupy real property.
PAYMENTS TO OR FOR THE BENEFIT OF A PERSON
Any payments made from the trust to the person of any amount, including an amount from the trust corpus or income produced by the corpus, that are paid directly to the person or to someone acting on the person's behalf, such as a guardian or legal representative. It also includes payments of any sort, whether from trust corpus or trust income, paid to another person or entity so that the person gets some benefit from the payment. This includes, but is not limited to:
Payments for clothing or other items for the person.
Payments for services the person receives.
Payments for care such as medical or personal that the person receives.
Payments to maintain a home.
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One which can be revoked, or dissolved, by the grantor. A trust which provides that the trust can be modified or terminated by a court is considered to be a revocable trust since the grantor or his/her representative, can petition the court to terminate the trust. A trust which is called irrevocable but which terminates if some action is taken by the grantor is considered to be a revocable trust. For example, a trust may require a trustee to terminate a trust and disburse the funds to the grantor if the grantor leaves a nursing home and returns home.
A formal written document which creates a trust and contains the powers of the trustee(s) and the rights of the beneficiaries, also called a TRUST AGREEMENT.