Trusts

Another way to manage your property is through a device known as a
"trust."

A "Trust" is a legal arrangement you create in which you split the legal
rights to property. You give to someone called a "Trustee" the legal right to
own and manage the property in the Trust by, for example, investing it or
selling it. The Trustee has the responsibility to see that the property in the
Trust is used to benefit the person named as the "Beneficiary." The Beneficiary
of the Trust has the legal right to demand that the Trustee live up to that
responsibility.

Usually, you (your lawyer) creates a trust by writing up a trust document
which sets out what property is to be put in to the trust, who the trustee and
beneficiaries are, and instructions on how to deal with the property in the
trust. You may decide to create a trust for many reasons.

Examples:

• You may create a trust fund managed by a bank as trustee for the benefit
  of your young children. If you die unexpectedly, the trust puts the arrangements
  in place to make sure that the children are provided for.
  
• You can also instruct the executor of your will to set up a trust for
  the benefit of your children after you die.

Published by: Illinois Legal Aid