What it is:

A trust is an instrument that allows you to appoint a person (trustee) to hold property for one or more beneficiaries to be distributed under specific terms and conditions you have decided.

The problems a trust can avoid or minimize:

• Your children receiving significant amounts of money when they turn eighteen (or before they are responsible enough to manage a full inheritance)
• Paying significant federal or state estate taxes (“death taxes”)
• Assets being “frittered away” and not used according to the purposes you feel would have the greatest impact on the lives of the people you love and causes you believe in
• Legal costs of up to 10% of the value of your estate used for legal expenses to probate your estate
• Delays of up to a year or more after your death before your assets can be distributed to your named beneficiaries as your estate is being probated

How a trust can protect and help you:

A trust helps you plan and provide for one or more beneficiaries (whether a person or organization) for many years after your death. You have the opportunity to give guidance to a trustee on how the money should be spent and reasons money should or should not be distributed. A trust can help you avoid or minimize taxes, allowing you to pass on more to your beneficiaries and less to Uncle Sam. There are various types of trusts, which can provide many benefits and serve a range of purposes that benefit both the grantor (person creating the trust) and his or her beneficiaries.