Trusts are a commonly misunderstood element of an estate plan. In its simplest form, a trust is a contract between three parties; the trustor or grantor creates the trust and funds it with assets, the trustee holds the assets and manages them for the benefit of the beneficiaries and the beneficiary receives those benefits. The trust is what defines the relationships and gives instructions and rules to follow.
When creating a trust, it is essential that the trustor has a clear picture of the objectives to achieve, such as avoiding probate, minimizing estate taxes or providing for the support of a disabled beneficiary. Any number of tools can be utilized to customize the terms of the trust to match the trustors intent exactly so that their wishes can be followed even after they die.
While many may feel that they don’t need a trust, nearly any size estate can benefit from the trust’s ability to avoid probate and provide for the streamlined distribution of assets to the heirs. Without a trust, a probate proceeding may be necessary to administer a will or to provide for court-supervised administration of the estate.
If you have questions as to how a trust can be used to accomplish your estate planning goals, give Nielsen Law Group a call to discuss your options. We can help to create a fully integrated estate plan to
carry out your wishes while also reducing the burden of administration on your loved ones.