Imagine a scenario where you and your spouse are going out for dinner and you hire a babysitter
The Grantor (You, the Parents): You are the Grantor because you dictate the instructions. You tell the babysitter:
1. The kids need to be in bed by 9 PM.
2. There is $30 on the counter to order pizza.
3. Please only let them play one hour of video games.
Trustee (The Babysitter): The person you designate to manage the money within the trust and carry out your wishes. The Trustee’s job is to ensure your instructions (like the bedtime and screen time rules) are followed.
The babysitter:
1. Gets them in bed by 9pm
2. Uses the $30 to order pizza for dinner
3. Only lets them play video games for an hour
Beneficiaries (The Children): The people who receive the benefits from the Trust. In the scenario, the children are the beneficiaries of the pizza and the general care provided according to the parents instructions.
What is the Trust?
The Trust itself is the thing that owns the money and assets (like the $30 left for pizza). It holds the assets where your instructions lie making sure that what you wish to happen will happen.
This structure allows you to maintain control over your assets and designate who will manage them and how they will be distributed after you are gone.
