While it can sometimes seem like there are an infinite amount of different kinds of trusts, the basic concept of this sort of legal arrangement remains the same. There four basic components of any trust.
The first component is the person who creates the trust. This person is called the trustor, donor, settler or grantor. This is the party that places money or other kinds of property in the trust.
The second component is the other person or entity who holds the trust for the benefit of someone else. This person is called the trustee and there may be multiple trustees. Banks and corporations may also be trustees.
The third component is the items actually deposited into the trust. The money and other property is called the principal or corpus of the trust. These assets may include deeds, stocks, and other appreciating or depreciating funds.
The fourth component of the trust is the beneficiary, or the person receiving benefits from the trust. There may be multiple beneficiaries of one trust.
For more on trusts and wills please call to schedule your free consultation with a California trust & will attorney.
