Trusts can help you accomplish a number of estate planning goals. They may provide a measure of protection for your assets, spare beneficiaries the cost and delay of probate and enable you to preserve privacy. They can also provide tax benefits. To understand the best way to use a trust in your own situation, contact an estate planning attorney and discuss the goals you have in mind.

The basic requirements for a trust are that it have a grantor (or creator), trustee and beneficiaries. The grantor is the person who establishes the trust and provides instructions, rules and guidelines for how the property should be managed and distributed. The trustee is the individual or entity that manages and distributes assets according to the terms of the trust agreement. The beneficiaries are the individuals who will receive annual earnings distributions and eventually will receive the trust principal (“corpus”). The trustee can be paid or not, depending on the terms of the trust. The trustee should be a competent and responsible person with financial experience, expertise, high ethical standards and the ability to understand and carry out your wishes.

When you create a trust, your assets will be retitled in the name of the trust, so that they are no longer part of your personal estate. It’s important to work with your attorney to ensure that you take the proper steps to transfer the property into the trust to avoid any delays, costs or conflicts of interest.

There are different types of trusts, including revocable and irrevocable trusts. In general, revocable trusts allow the grantor to change the terms of the trust at any time. Irrevocable trusts can’t be changed or modified, except for a few specific circumstances.

In addition to retitling assets, you should also choose the trustee carefully and include in your trust document the terms of how you want the trustee to manage and distribute the assets. This includes what types of investments the trustee should make, and when. It can also include whether the trustee should seek professional investment management guidance, especially if you have young beneficiaries or those who may need additional support in managing money.

Many people use a trust to protect their assets from creditors and other claims against them after they die. They can be used to hold life insurance policies, real estate or other assets. The trust can also be established to help pay for long-term care or to keep a family business in the family.

Besides protecting assets, trusts can be used to provide for children or individuals with disabilities, avoid or reduce estate taxes, and to maintain privacy. There are many reasons why trusts should be a part of your estate plan, but it is important to talk with an experienced attorney and consider all the options before deciding on the best way to use a trust in you own situation. The attorneys at our firm can answer your questions and help you get the trust set up properly to meet all your goals.