There are many tools in an estate planner’s toolbox to help them develop an estate plan that works for them and reflects their wishes. Trusts are one part of an estate plan that many estate planners may have questions about and not entirely understand.
Estate planning is an important process that can help ensure the estate planner’s wishes are carried out and that their property is distributed how they would like it to be distributed. A trust can be used as the primary component of an estate plan or may be used in conjunction with a will. A trust manages the distribution of the estate planner’s property by transferring its benefits to beneficiaries and management of the trust to the trustee.
When creating a trust, the property owner transfers the legal ownership of the property to the trustee, which may be a person or an institution, who then manages the property for the benefit of the beneficiaries of the trust. It is important to point out that trustees also have certain fiduciary duties to be familiar with. Trust property must be transferred for the trust to be created. There are two broad categories of trust including testamentary trust and living trusts. There are also a variety of different types of trusts to consider so estate planners should be familiar with all of their options.
The estate planner should ensure they understand the estate planning resources available to them based on their goals and needs for their estate plan. With that help, estate planners can ensure they develop the most effective estate plan for them.