A trust allows you to set aside assets and have someone manage them for the benefit of others. It’s often used by those who want to minimize taxes and protect their wealth for the benefit of beneficiaries, who can include anyone you wish — even institutions like charities or schools. Creating and managing a trust can be complicated, but there are many benefits.

Choosing the right trustee is an important first step. While you can choose a friend or family member, it is often better to have an independent trustee. This provides a level of objectivity that can help preserve family relationships and ensure your wishes are carried out. Moreover, a professional trustee can also be helpful in reducing estate taxes and spare your beneficiaries the time, expense and hassle of probate court.

A lawyer can help you select the right type of trust for your situation, and draft a trust agreement that outlines its terms. You may also wish to create a power of attorney for any assets you plan to hold outside your trust. This person will have legal rights to handle these assets, and can make medical decisions for you if you’re incapacitated.

Once the trustee has the legal authority to act on your behalf, you’ll need to move your assets into the trust. This is called “funding” your trust and simply means changing the ownership of the asset from your name to the trust’s name. You should also regularly review your trust to ensure that it still reflects your current financial situation and goals.

In addition to avoiding probate and minimizing taxes, trusts can also provide protection for your assets from heirs who are poor stewards of money or from lawsuits against your estate. A properly structured trust can also limit exposure to conflict between spouses or other beneficiaries.

While many people believe that trusts are only for the wealthy, they are becoming increasingly common in estate planning for all levels of wealth. For most people, a trust is a worthwhile investment in order to avoid the costs, delays and complications that can arise when families try to sort out complex issues without the assistance of a qualified legal professional.

If you are interested in establishing a trust, start by interviewing lawyers who practice in this area and ask them to explain how they would approach your specific circumstances. You may also wish to consider hiring a specialist who can handle both the drafting and administration of your trust, referred to as a fiduciary or administrative trustee. This person has the legal and fiduciary responsibility to manage your trust in accordance with its terms and the law, preserving its value and protecting your beneficiaries. They can also help you choose the appropriate trustees and keep your trust up-to-date as your circumstances change. Having the right trustee can make all the difference in the successful transfer of your wealth to your loved ones. Trust is about so much more than just finances, and it can be a powerful tool to bring peace of mind to you and your family.