Why Use A Trust?

One of the most common misconceptions about trusts is that they’re just for wealthy people. That is simply untrue- trusts are beneficial no matter how much money or property you own. Estate planning is done for the benefit of your loved ones in the event of your passing, so a trust can help provide privacy, protect your assets, and avoid probate.

A trust is a legal document that creates a relationship between three separate parties- the trust, the trustee(s) & the beneficiaries. The trust is the legal entity that will own all the assets given to the trust. The trustee(s) is the person(s) making decisions for the trust. The beneficiaries are the people who will receive assets from the trust upon the death of the trustee(s).

While trusts may seem confusing and complicated, they entail the same legal relationship as businesses like LLCs. The LLC is the business that owns the assets (like the trust), the president of the LLC is the decision maker for the business (like the trustee), and the members of the LLC (like the beneficiaries) receive the profits. As you can see, the relationships established in a trust mirror those of other common financial arrangements.

When you hire an estate planning attorney, they can help you create a plan that fits your needs. However, all estate plans contain similar documents and language. You and your attorney will determine what kind of trust you need and the trust entity will be created. The language of the trust will list how the assets should be managed and who they should be passed to upon death. The grantor(s) (meaning the person(s) who are creating the trust) will place the assets in the trust, changing ownership from them as an individual(s) to the trust. The grantor(s) will then name a trustee who will be the decision-maker for the trust, the assets contained within the trust, and the beneficiaries. When the grantor passes, the trustee will then execute the distribution of assets according to the language within the trust.

Trusts are the best way to make your wishes clear and have benefits that a will does not. Some of these benefits include:

• Avoiding probate, which is the court’s process of validating a will
• Allowing the grantor to retain control of assets while they’re alive & directing your trustee(s) to manage the trust if you become unable to make decisions for yourself
• Minimizing estate & income taxes for your beneficiaries, therefore preserving wealth
• Nominating guardians for your children & creating responsible plans for your children’s inheritance
• Naming charities or foundations to receive gifts upon your passing
• Protecting assets from creditors, lawsuits and other life-changing events like divorce
• Creating privacy due to the trust owning all assets and the names of trustees not being public record



Enlisting the services of an experienced estate planning attorney, like Daniel Finder at Finder Law, can help ensure your assets are distributed according to your wishes & preserve as much of your wealth as possible. Daniel Finder has over a decade of experience in estate planning, so he is more than capable of making the planning process as easy as possible. We treat each of our clients and their needs individually, so we can create a unique plan for you.

Call us today to schedule a consultation.