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Trust Vocabulary

Grantor (also known as Trustor):

The person(s) who creates the trust

Trustee:

The person(s) who manages the trust’s day-to-day operations

Beneficiary:

Any person who stands to inherit or benefit from the trust

Revocable Trust:

A trust wherein the Grantor is living and usually acting as the trustee. The Grantor retains the full right to amend, change, or cancel the trust at any time.

Irrevocable Trust:

A trust wherein the Grantor is not the trustee and has therefore given up some measures of control over the trust’s operation. Under New York State law, an irrevocable trust actually can be revoked if all parties to the trust (grantor, trustees, and beneficiaries) consent. The Medicaid Asset Protection Trust is a type of Irrevocable Trust.

Trustee’s Fees:

The annual salary for a trustee (a sliding scale that averages about a fraction of 1%) that is prescribed by New York State Law. Family members acting as trustee will almost never take the fee, but professionals like financial institutions will do so.

Inter Vivos Trust (also known as Living Trust):

Any trust that a Grantor signs and executes while he/she is living

Testamentary Trust:

A trust inside the language of a Will – the Trust is not set up until the individual dies and the Will goes through Probate