Trust Account
Account administered by a trustee for specified beneficiaries.
Detailed Description
Trust Account
What is the primary purpose of a trust account?
The primary purpose of a trust account is to safeguard assets for the benefit of a beneficiary, ensuring funds are used according to the grantor's wishes.
What are the main types of trust accounts?
The main types include revocable, irrevocable, testamentary, living, and special needs trust accounts.
How does a trustee manage a trust account?
The trustee manages the account according to the trust agreement, making investment decisions and distributing funds to beneficiaries.
What are some benefits of using a trust account?
Benefits include asset protection, control over distribution, avoiding probate, and potential tax advantages.
What legal requirements are involved in establishing a trust account?
Legal requirements include creating a trust document, possibly registering it with a court, and the trustee adhering to fiduciary duties.