Trust Basics

Is anyone ever prepared to lose a loved one, let alone​ ​prepared for the immense responsibility of ensuring the​ ​proper execution of the loved one’s dying wishes? ​Being a Trustee (the person responsible to settle the Trust) provides direction on how the belongings/assets should be administered. Having a Trust also provides more control over the situation and avoids court involvement.

Yet, being a Trustee is not easy. Ask any family conflict specialist, and they will tell you that “money” is one of the most common sources of family conflicts. In Trust estate settlements, this balance of managing family and money becomes one of the most difficult challenges a Trustee faces. The responsibility of​ ​being a trustee is sometimes referred to as “a job of the heart, as well as the head” and “the worst job I never applied for,” due to this delicate balance of family and money. See below, for the Trust Basics:

What is a Trust: 

  • When you give another party the authority and direction to handle your assets for the benefit of those you leave behind (beneficiaries) when you pass away  
  • Revocable Living Trust: a Trust that can be changed over time by the person who created it (Trustor) 
  • Irrevocable Living Trust: a Trust that cannot be modified or terminated without the approval of everyone named in it  

Who does Trust impact: 

  • The decedent’s (Trustor’s) family/loved ones
  • The Trustor’s legacy after they have passed 
what is a trust
Family Trust

When is a Trust needed: 

  • No one knows when they will pass away and most of the time this is a hard subject for people to address. We recommend people speak to an Estate Planner for a free consultation as soon as possible to determine the best approach to have control over their assets.   

Why is a Trust needed:  

  • A Trust allows you to be very specific about how, when, and to whom your assets are distributed. On top of that, there are dozens of special-use Trusts that could be established to meet various estate planning goals, such as charitable giving, tax reduction, and more.
  • It avoids probate and allows the person that passed to give direction on the distribution of their assets 

***These are general and simple guidelines. Please consult with your attorney for legal guidance. If you need a specialized attorney that you can trust and fits your needs, please let us know.

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