When you think of a trust, your first thought may be about a wealthy family living in a mansion and passing their inherited wealth to future generations. However, trusts are not exclusively for high-net-worth individuals and families; they can also benefit those of more modest means. You can use a trust to ensure that your assets are transferred according to your wishes and in line with your goals for how they will be used, even if you become incapacitated. In addition, a trust can minimize taxes and spare your loved ones the hassle of probate court.

The word trust comes from the Latin term ‘trust in’ or ‘trust that,’ and is often associated with a feeling of confidence or safety derived from the relationship between an individual or entity and another person or group. However, the concept of trust is more complex than simply feeling confident in someone or something, according to research conducted by scholars. For example, Rose McDermott, a professor of psychology at Brown University, points out that the sense of trust is rooted in human universals, which are often described as social bonding, and that trust is determined by an internal mental state rather than solely on the actions of others or their verbal expressions of trust.

People often feel a sense of trust in the people closest to them, including family and friends, but they can also place trust in other individuals or organizations they do not know well. McDermott reports that researchers have identified the biological component of trust in humans, citing studies showing that people with higher concentrations of the hormone oxytocin are more likely to trust others. This hormone plays a role in social bonding and in other physiological functions, such as contraction of the uterus and breastfeeding.

If you want to transfer certain assets into a trust after your death, you will need to write a document called a “trust instrument.” In this document, you (the grantor) describe the assets you wish to put in the trust, and the trustee you select to manage those assets. A trustee can be an individual, a firm, or even an institution such as a school or charity. The grantor can name current beneficiaries who are entitled to receive payments from the trust now, and future (remainder) beneficiaries who will be entitled to distributions from the trust after a specified period of time.

If you are considering using a trust in your estate planning, it is important to consult with an attorney who specializes in this area. He or she will be able to explain the benefits and help you determine whether a trust would fit your needs. Your attorney can also coordinate with your tax and financial advisors to make sure your plan is coordinated and addresses all of your objectives. A good starting point is to interview lawyers and see what they have to offer. It is also helpful to work with a financial planner who has experience advising clients on trusts, so that the overall strategy for your wealth preservation and transfer goals is comprehensive.