A trust is a legal tool that helps you manage and distribute your assets according to your wishes, both during your life and after your death.

A trust is a legal arrangement that allows you to transfer assets to a trustee to manage on behalf of a beneficiary. Trusts can help avoid probate, protect privacy, and provide greater control over how and when your assets are distributed.

• There are many types of trusts, but all involve three key roles: The person who creates the trust (the grantor), the person or institution that manages the trust (the trustee), and the person who benefits from it (the beneficiary).
• Revocable living trusts are the most common type used in estate planning: They allow the grantor to retain control during their lifetime and can be changed or revoked at any time. After death, the trust becomes irrevocable and bypasses probate.
• Irrevocable trusts offer more protection, but less flexibility: Once established, these cannot be changed easily and are often used for tax planning, asset protection, or Medicaid eligibility strategies.
• Trusts help avoid probate court: Assets in a trust pass directly to beneficiaries without going through the court system, which can save time, legal fees, and stress for your loved ones.
• Trusts can provide privacy: Unlike wills, which become public during probate, trusts are private documents and keep details of your estate and beneficiaries confidential.
• You can include detailed instructions in a trust: For example, you can delay inheritance until a certain age, provide for a loved one with special needs, or set conditions for how money is used.
• A trust only controls assets that are properly titled in it: Simply creating a trust is not enough—you must retitle bank accounts, real estate, and other property in the name of the trust.
• Trusts can be useful for blended families or second marriages: They allow you to support a surviving spouse while ensuring assets are ultimately passed to children from a previous relationship.
• Trusts can reduce estate taxes in some situations: Especially for high-net-worth individuals, certain types of trusts can help minimize federal or state estate taxes.
• Working with an attorney is usually recommended: Trusts are powerful tools, but they must be set up correctly to work as intended and to comply with state laws.

Consider the following factors when creating a trust: