For instance: What’s the difference between a revocable and irrevocable trust?
In my novel, “The Greatest Games Never Played,” the main character, William Greenhorn, and his sister, Emily,
have a father who dies when they are young, as a result of injuries suffered in World War II.
His parents could have 2 types of trusts.
1. Revocable. His parents control all the property (money, real estate, etc.) As the Trustees, they have complete control over the Trust and its funds. When the father dies, the mother could be the sole Trustee.
2. Irrevocable. His parents establish the trust, but it can’t be amended or revoked. Most often, an irrevocable trust has someone else as Trustee, though the Trust can still provide for the benefit of Grantor (the one who made the Trust). It’s just that the Trustee has control.
In both, the Trustee has a responsibility to the Beneficiaries, the people who the Trust is for. This is known as Fiduciary,
which means “you have to put their interests first.” This can include subsequent beneficiaries, such as William or Emily’s grandchildren.
So, perhaps William can be given some money from the Trust for housing if he is drafted and goes into the minor leagues for a few years.
Or for his wedding. Emily might have some money set aside for her schooling. The Trustee is responsible for making sure there is enough money that they can do this.
Not all of a person’s property has to go into the Trust, however. They might choose to leave the family home out of the trust until
William or Emily marry, because they figure they can sell it to one of them to start a family.
Reasons for having a Revocable versus an Irrevocable Trust vary. Or, for even having a Trust at all.
Wills can be more individualized than trusts; you usually don’t give specific gifts in a Trust. Still, a Trustee could be authorized to distribute such things.
The best thing to do is to seek Counsel, especially since I only know Ohio law. Still, I hope this little explanation of different types of trusts – and what a Trust is – helps.
