| When does life begin…read on:
CLIENT QUESTION:
Good afternoon – Is a trust created and effective on the date the Settlors/Grantors sign the trust or only after the trustee has signed the trust? Does it matter if the trustee signs the trust on a date after the Settlors/Grantors? As always, many thanks for your kind reply.
MY RESPONSE:
A trust is a contract between two parties, the Grantor (a/k/a Settlor) and the Trustee. It comes to life when both parties (the Grantor and at least one Trustee) sign the contract, but the order does not matter.
EXAMPLE:
Grantor signs the trust on October 1.
On October 2nd we mail it to the first of two Trustees.
On October 4th the first Trustee signs the Trust.
On October 5th the first Trustee mails the Trust to her sister, the second Trustee.
On October 9th the second Trustee signs the trust.
On October 12th I receive the Trust back in my office.
On what date was this trust born?
ANSWER:
Life began for this trust on October 4th, after the Grantor and at least one Trustee signed the trust.
I hope this helps. |
