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A statement of trust is a document that outlines the terms of a trust, including the purpose, creator, trustees, beneficiaries, and distribution of benefits. It also lists the duties and authority of the trustee and may include provisions for a successor trustee. The document may also include information about the grantor’s family members and whether the trust is revocable or non-revocable.
A statement of trust, also known as a trust deed or agreement, is a document used to list the terms of a trust. For example, a trust agreement lists items such as the purpose of the trust, the name of the creator of the trust, and the names of the trustees. It also includes details such as how trust benefits should be distributed and who the beneficiaries are. A trust deed also lists the person who will act as the acting trustee, if needed, as well as the level of authority the trustee will have.
When a person or group of people creates a trust, a statement of trust is made and signed. An individual who creates a trust includes his or her name, address, and date of execution of the trust in this document. It also includes the name and address of the trustee. Often, this document also includes provisions for the assignment of a new trustee in the event that the initial trustee is unable to serve. For example, a successor trustee may take over if the original trustee dies, becomes incapacitated, or is simply unwilling to serve.
With regards to trustees, a trust deed typically lists the duties a trustee has and how they are to manage the trust. For example, if you will have the authority to make investment decisions for the trust, this will be disclosed in this document. Likewise, this document typically stipulates any discretion the trustee has in giving money to the beneficiaries of the trust. In some trusts, for example, a trustee may have the right to decide when and how to release money to beneficiaries.
The statement of trust may also include the names of the grantor’s immediate family members. For example, if he has a wife and children, he will usually include their names. This document may also include details about the beneficiaries, such as who they are and how benefits will be determined. In a living trust, a married couple is typically the beneficiary even if one or both spouses created the trust. In other types of trusts, a person’s offspring, spouse, or other loved ones are often listed as beneficiaries. The trust deed typically includes when and how the beneficiaries are to benefit from the trust both before and after the grantor’s death.
Some trusts are revocable, which means that the grantor can change his mind about the arrangements therein. Others are non-revocable, which means the trust agreement is set in stone once signed and executed. Information about whether or not the trust can be changed or revoked is usually also included in a trust statement.
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