A trust involves any arrangement by which legal title to property is transferred from one person to be administered by a trustee for another person's benefit. The elements of a valid trust are:
" A designated beneficiary.
" A designated trustee.
" A fund identified to enable title to pass to the trustee.
" Delivery by the settlor or grantor to the trustee with the intent of passing title.
A trustor executes a living trust during his or her lifetime. It can be revocable or irrevocable.
Anyone legally capable of holding title to, and dealing in, property can be a trustee. If a trustor does not name a trustee, or if a named trustee cannot or will not serve, a court can appoint one. A trustor may prescribe the trustee's powers and performance. State law applies only in the absence of such terms. A trustee must act with honesty, good faith, and prudence, and exercise loyalty toward the beneficiary. A trustee must keep clear, accurate accounts and furnish complete information to the beneficiary while keeping trust assets separate. A trustee pays an income beneficiary the net income of the trust. A trustee must distribute the risk of loss of the trust assets through diversified "prudent investments."
Para su conveniencia, debajo del texto en español le brindamos la versión completa de este formulario en inglés. For your convenience, the complete English version of this form is attached below the Spanish version.
