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Simple English definitions for legal terms
trust legacy
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A quick definition of trust legacy:
Trust Legacy: A gift that someone leaves behind in their will, usually money or personal property. It can be given without any conditions or requirements, or it can depend on certain events happening in the future. If the legacy is not paid out yet, it is called an accumulated legacy. If the person receiving the legacy can choose between two or more items, it is called an alternate legacy. If the legacy is paid out from a specific source, it is called a demonstrative legacy.
A more thorough explanation:
A trust legacy is a type of legacy that is created through a trust. A legacy is a gift that is given by a person through their will, usually of personal property or money. A trust legacy is a gift that is given through a trust, which is a legal arrangement where a person (the trustor) gives their assets to a trustee to manage for the benefit of another person (the beneficiary).
- Revocable Trust Legacy: A person creates a revocable trust and names their child as the beneficiary. The trustor can change the terms of the trust or revoke it at any time during their lifetime. When the trustor dies, the child receives the assets in the trust as a legacy.
- Irrevocable Trust Legacy: A person creates an irrevocable trust and names their favorite charity as the beneficiary. The trustor cannot change the terms of the trust or revoke it once it is created. When the trustor dies, the charity receives the assets in the trust as a legacy.
These examples illustrate how a trust legacy is created through a trust and how the assets in the trust are distributed to the beneficiary as a legacy.