Trust Agreements & Premarital Agreements

Premarital agreements and trusts serve two distinct purposes.

Premarital agreements and trust agreements are two separate documents that have different effects on the property you own. Both documents have separate requirements to be valid and may also affect each other under specific circumstances.

Definition

According to "Black's Law Dictionary," a premarital agreement is a written agreement before marriage that states the parties rights to support or property in the event of the marriage ending in divorce. A trust agreement is a contract between the individual and a trustee to maintain a trust for the benefit of the beneficiaries.

Requirements for Validity

For a premarital agreement to be valid in most states, it must be signed in writing, both parties to the prenuptial agreement must disclose their assets and the there must be no undue influence on the parties. For a trust agreement to be valid, it must be made of a person who has the capacity and intent to do so. In addition, the trust must be funded by property the trust creator owns. The trust must also have reasonably ascertainable beneficiaries.

Effects

Depending on laws in your state, premarital agreements may limit an individual's rights to property or trust benefits in the event of divorce.

Warning

This is not legal advice or representation. Laws in your state may differ. Seek the help of a licensed attorney regarding these matters.