Estate planning is, generally, the manner by which a person arranges
the transfer of assets upon death, or in anticipation of death. A properly
constructed estate plan will preserve the greatest amount of the decedent's assets for
those intended to receive the assets, or beneficiaries. It is also possible to
construct an estate plan which will give the person creating the estate plan the greatest
level of flexibility in handling assets of the estate. In most cases, some form of
ownership is placed in a third party, creating a trust.
A trust is defined generally as a property right held in a fiduciary
relationship by the trustee for the beneficiary. The trustee holds title in the
property for the beneficiary, who becomes owner when the terms of the trust are met.
For instance, the grantor may create a trust giving assets to a beneficiary upon
the grantor's death. Until the grantor's death, the trustee will hold title to the
property for the beneficiary. Upon the grantor's death, title passes in fee to the
beneficiary, who then becomes owner of the property.
