Trusts

What is a Trust?

A Trust is a contract between the Settlor (aka Trustor), who is the creator of the Trust, and the Trustee.  

Who benefits from a Trust?

The Beneficiaries benefit from the Trust.  Thus, the primary parties to a Trust are the Settlor, Trustee, and Beneficiary.

It is typical for a Revocable Trust to have the Settlor, Trustee, and the initial beneficiary be the same individual(s).  Such a Trust would give the person creating the Trust (Settlor) full power to control the Trust while he/she is alive and competent.

Why have a Trust?

--This is the question I am asked the most.  

--Do you have children who are minors? If so, a Trust can be used to hold assets for specific purposes such as education, religious service, health, and general maintenance.  Without a Trust assets passing to minors are under the complete care and discretion of whoever is appointed as their guardian.  A Trust is just a much better planning tool.

--Do you own real estate?  If so, a Trust can entirely avoid the need for your estate to pass through probate.  By the way, having a proper estate plan created by Paul R. Poulsen is less expensive than a typical probate and a much BETTER planning tool.

--Do you want to avoid leaving a headache for your loved ones when you pass away? Of course you do.  A Trust is a simple way to avoid many of the pitfalls loved ones may run into.  Trust administration is simple and clear...passing away is no planning of just a Will leaves your loved ones with more questions than answers and more headaches than cherished memories.

What can a Trust do for me?

--A Trust allows you to determine how your assets will be managed and distributed both during your life and after you pass away.  For example, if you wanted a portion of your assets to be held for the educational benefit of your grandchildren.  A Will cannot do this.

--A Trust will most likely allow your estate to entirely avoid probate.  This is because the Trust continues after you have passed away and can continue to own assets, or simply distribute assets and then terminate.

--A Trust can negate or reduce estate taxes.