A Nevada resident who creates a trust as part of estate planning is often referred to as the trust’s settlor. In addition to placing property into the trust in question and defining how it should work by filling out the initial legal documents, settlors may fulfill special functions that depend on the nature of the inheritances they want to create. Irrevocable trusts established to benefit other people, for instance, aren’t always operated by trustees alone. Settlors may use trust documents to designate specific principles and guidelines that these administrators should follow.
With revocable trusts, settlors commonly fulfill the trustee role themselves. They may also be principal beneficiaries of the estate. In many cases, however, trust documents place explicit bounds on the types of behaviors settlors may engage in and define the eligibility criteria for determining whether they’re allowed to retain trustee powers. These criteria may include financial solvency and other qualifiers, and many documents also lay out procedures for transferring power to subsequent trustees.
Revocable trusts often include stipulations that let settlors change trust terms at will. Such powers may also permit actions like modifying or removing property from the trust or canceling it altogether. Settlors don’t necessarily have to do anything after a trust has been formally created and funded, but their actions heavily impact the functionality of these inheritance structures.
Estate planning documents like wills and living trusts are governed by many different laws and situation-specific rules. This allows them to serve diverse functions, such as funding charitable contributions or providing for beloved relatives, but their legal flexibility can also make it harder to choose the best option. People who want to use trusts as part of their overall estate planning may want to meet with an attorney in order to learn more about what they can and cannot do.