Besides three parties, at least two other elements are necessary for a valid trust.
The trust instrument is the document that sets forth the terms of the trust.
The other necessary element is property. After all, the trustee must be holding something for the benefit of the beneficiary.
Property of the Trust
When laypersons use the word “property,” I believe they usually mean real estate. But, lawyers use the term “property” much, much more broadly, to mean literally any transferable interest. Sometimes trust property is also referred to as the res or corpus or assets of the trust. (Bonus words!)
Any property can be held in trust. Seriously, check out this list of 101 assets that would fit in a trust. You could likely think of literally hundreds more types or categories of property to place in your own individual trust.
How about an unfunded trust that will receive property at some point in the future? Can you even do that?
Yes, that can certainly be done. This is usually called a pour-over trust. (More bonus words!) The pour-over trust deserves its own blog post. Briefly, a pour-over trust is usually set up by language in a will. A will may validly devise property to a trust, established during the testator’s lifetime, and then funded at her death.
Example
Let’s take a very simple example. Kate has a lawyer write her will, including language that at her death all her Monster Truck memorabilia be placed in a trust for the benefit of her nieces and nephews. Only at Kate’s death will the property be transferred into the trust, not before.
Take-Aways
The important points are that property is necessary, at some point, to make a trust valid, and that literally any transferable interest in property – anything! – can be held in a trust.
https://www.gordonfischerlawfirm.com/wp-content/uploads/2017/08/Screen-Shot-2017-08-14-at-3.21.37-PM.png6841048Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-01-21 08:25:442020-05-18 11:28:37(Legal) Word of the Day: Property
When we think of Dr. King, it’s often of his tireless campaign for racial justice, but that is shortchanging his all-encompassing vision for a better America involving poverty,health, and women’s rights. The social justice reforms he championed and his commitment to nonviolent direct action in order to achieve them led to his receiving the Nobel Peace Prize in 1964. Notably, he donated the entirety of his award — $54,123—to the civil rights movement.
Leaving a legacy is one of the most important things we can do in life because it enables us to carry our influence, our values, and our convictions into the future. Our lives may not have the kind of profound historical impact of Dr. King’s, but our individual legacies are no less consequential to the people we love and the organizations whose missions we care about. What will your legacy be?
https://www.gordonfischerlawfirm.com/wp-content/uploads/2020/01/Screen-Shot-2020-01-20-at-8.57.58-PM-e1579575921106.png3871035Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-01-20 20:58:102020-05-18 11:28:37Honor Dr. Martin Luther King, Jr. by Defining your Legacy
Dr. King and his lasting legacy can undoubtedly serve as an inspiration to us all. I see his dream of a better world—a better future for all—exemplified in action by the hardworking Iowa-based nonprofit organizations. I also see his lessons being practiced by the wonderful donors who support these organizations and advance their missions.
So, yes, it’s nice to have a day off of work, but make certain the day doesn’t pass you by without setting a plan in place to perform some form of service for others.
Dr. King tirelessly pursued the advancement of human rights for the greater good and we can honor him by practicing forms of charitable giving as a way to advance our communities. Be it through volunteering time to an organization that speaks to your heart (remember, certain costs associated with volunteer can be tax deductible), setting up a donor-advised fund, or simply writing a list of the nonprofits you would like to include as beneficiaries in your will, you too can set out on an honorable service-oriented path and inspire your friends, family, and colleagues to follow suit.
Dr. King’s lessons resonate with our hearts and heads because we too have dreams of making our corners of the world a better place to learn, live, and grow through service. Maybe Dr. King’s commitment to “practice what you preach” mentality has inspired you this year to give charitably more and more often. Maybe you considered his question, “What’s your life’s blueprint?” and decided to form the charity you’ve wanted to establish for a long time. Either way, don’t hesitate to contact me for a free consultation. As Dr. King said: “The time is always right to do what is right.”
https://www.gordonfischerlawfirm.com/wp-content/uploads/2018/01/MLK-s.jpg300900Gordon Fischerhttps://www.gordonfischerlawfirm.com/wp-content/uploads/2017/05/GFLF-logo-300x141.pngGordon Fischer2020-01-19 15:09:122020-05-18 11:28:37Celebrating the Legacy of Martin Luther King Jr.
(Legal) Word of the Day: Property
Legal Word of the Day, TrustsThree Parties
I’ve previously written about the three parties necessary for every trust: (1) the settlor (sometimes called the donor or grantor); (2) the trustee; and (3) the beneficiary.
Two Other Elements
Besides three parties, at least two other elements are necessary for a valid trust.
Property of the Trust
When laypersons use the word “property,” I believe they usually mean real estate. But, lawyers use the term “property” much, much more broadly, to mean literally any transferable interest. Sometimes trust property is also referred to as the res or corpus or assets of the trust. (Bonus words!)
Any property can be held in trust. Seriously, check out this list of 101 assets that would fit in a trust. You could likely think of literally hundreds more types or categories of property to place in your own individual trust.
Pour Over Trust
How about an unfunded trust that will receive property at some point in the future? Can you even do that?
Yes, that can certainly be done. This is usually called a pour-over trust. (More bonus words!) The pour-over trust deserves its own blog post. Briefly, a pour-over trust is usually set up by language in a will. A will may validly devise property to a trust, established during the testator’s lifetime, and then funded at her death.
Example
Let’s take a very simple example. Kate has a lawyer write her will, including language that at her death all her Monster Truck memorabilia be placed in a trust for the benefit of her nieces and nephews. Only at Kate’s death will the property be transferred into the trust, not before.
Take-Aways
The important points are that property is necessary, at some point, to make a trust valid, and that literally any transferable interest in property – anything! – can be held in a trust.
Let’s Talk Trusts
It can be difficult to determine on your own if a trust may be right for your personal situation. It certainly doesn’t hurt to take me up on my offer for a free one-hour consultation. Give me a call at 515-371-6077 or shoot me an email at gordon@gordonfischerlawfirm.com.
Honor Dr. Martin Luther King, Jr. by Defining your Legacy
Charitable GivingToday we celebrate Dr. Martin Luther King, Jr. and his passion, constancy, and determination in making America live up to its professed ideals and fulfill “the promise that all men, yes, black men as well as white men, would be guaranteed the unalienable rights of life, liberty, and the pursuit of happiness.” His powerful impact belies the brevity of his life—a public career that lasted just a dozen years, from the Montgomery, Alabama, bus boycott in 1956 to the sanitation workers’ strike in the Memphis, Tennessee where he was assassinated in 1968 at the age of 39.
When we think of Dr. King, it’s often of his tireless campaign for racial justice, but that is shortchanging his all-encompassing vision for a better America involving poverty, health, and women’s rights. The social justice reforms he championed and his commitment to nonviolent direct action in order to achieve them led to his receiving the Nobel Peace Prize in 1964. Notably, he donated the entirety of his award — $54,123—to the civil rights movement.
I see Dr. King’s examples of generosity and commitment to the betterment of our world being practiced every day by Iowans who support the nonprofit organizations in their communities through charitable giving. Many ensure their support will continue after even after death, by creating estate plans that include legacies for their favorite charities.
Leaving a legacy is one of the most important things we can do in life because it enables us to carry our influence, our values, and our convictions into the future. Our lives may not have the kind of profound historical impact of Dr. King’s, but our individual legacies are no less consequential to the people we love and the organizations whose missions we care about. What will your legacy be?
What will your legacy be? Don’t hesitate to contact me for a free charitable giving consultation. As Dr. King said: “The time is always right to do what is right.”
Celebrating the Legacy of Martin Luther King Jr.
Charitable Giving, Events, From Gordon's Desk...Martin Luther King Jr. Day is tomorrow (January 20) I think it’s important to pay tribute to a man who truly championed ideals of equity, freedom, peace, and justice. Among his many accomplishments, Dr. King tirelessly pushed for nonviolent activism and peaceful resolution to human rights issues. He reportedly wrote five books and gave hundreds of speeches in a single year…more than most of us could produce in a lifetime. And, there’s no doubt that he was a key player and influencer in the passage of the U.S. Civil Rights Act of 1964. Dr. King was subsequently was awarded one of the highest honors in the world in 1964—the Nobel Peace Prize—for “his dynamic leadership of the Civil Rights movement and steadfast commitment to achieving racial justice through nonviolent action.” (He donated the prize money, $54,123, back to the civil rights movement.)
Dr. King and his lasting legacy can undoubtedly serve as an inspiration to us all. I see his dream of a better world—a better future for all—exemplified in action by the hardworking Iowa-based nonprofit organizations. I also see his lessons being practiced by the wonderful donors who support these organizations and advance their missions.
So, yes, it’s nice to have a day off of work, but make certain the day doesn’t pass you by without setting a plan in place to perform some form of service for others.
Dr. King tirelessly pursued the advancement of human rights for the greater good and we can honor him by practicing forms of charitable giving as a way to advance our communities. Be it through volunteering time to an organization that speaks to your heart (remember, certain costs associated with volunteer can be tax deductible), setting up a donor-advised fund, or simply writing a list of the nonprofits you would like to include as beneficiaries in your will, you too can set out on an honorable service-oriented path and inspire your friends, family, and colleagues to follow suit.
Dr. King’s lessons resonate with our hearts and heads because we too have dreams of making our corners of the world a better place to learn, live, and grow through service. Maybe Dr. King’s commitment to “practice what you preach” mentality has inspired you this year to give charitably more and more often. Maybe you considered his question, “What’s your life’s blueprint?” and decided to form the charity you’ve wanted to establish for a long time. Either way, don’t hesitate to contact me for a free consultation. As Dr. King said: “The time is always right to do what is right.”