A Trust is a legal arrangement in which a trustee holds and manages assets for the benefit of another person (the beneficiary). The person who establishes the Trust is known as the grantor. The purpose of a Trust can vary, but it often serves as a way to manage assets, reduce taxes, and provide for loved ones. The terms of the Trust are outlined in a written agreement, and the trustee has a legal obligation to manage the assets in accordance with those terms.

FAQs

Q: What Is Included in My Estate?

Your estate is comprised of all the assets that you own, including: Real estate property Bank accounts and investments Personal property, such as vehicles, jewelry, furniture, and artwork Business interests Life insurance policies (if the policy is in your name) Retirement accounts (if there's no named beneficiary) Stocks, bonds, and other securities Intellectual property, such as patents and copyrights Any other assets that you own, such as collectibles, precious metals, and artwork. It's important to note that some assets may not be included in your estate if they pass directly to a beneficiary or if they are owned jointly with another person. These may include assets with a named beneficiary, such as certain types of insurance policies and retirement accounts, and jointly held property, such as joint bank accounts or real estate.

Q: Who Needs an Estate Plan?

An estate plan is a set of instructions for how a person's assets will be managed and distributed after their death. Estate planning is not just for the wealthy, and in fact, it's beneficial for anyone who has assets and wants to control what happens to them after their death. Estate planning is especially important for people who: Want to ensure that their assets are distributed according to their wishes, rather than according to state law. Want to minimize the time and expenses associated with probate. Want to provide for their spouse, children, or other beneficiaries. Want to provide for a beneficiary with special needs or disabilities. Have a high net worth and want to minimize estate taxes. In short, anyone who has assets and wants to control what happens to them after death should have an estate plan. Estate planning is an important way to protect one's assets, provide for loved ones, and ensure that one's wishes are carried out.

Q: Is Probate Only for Those with a Large Estate?

No, probate is not only for those with a large estate. Probate is the legal process of settling an estate after a person has died, regardless of the size of the estate. Probate is necessary for distributing the deceased person's assets, paying debts, and transferring ownership of property. The complexity and cost of probate can vary depending on the size of the estate, but it is a requirement for all estates that go through the process.

Q: If I Have a Trust, Do I Still Need a Last Will and Testament?

Yes, you still need a Last Will and Testament even if you have a Trust. A Trust can serve as a supplement to your Will, but it cannot completely replace it. A Will is necessary for distributing any assets that are not covered by the Trust and for appointing a guardian for minor children.

Q: Who Can Serve as Executor?

An executor is typically a person or entity named in a will to manage the distribution of a deceased person's assets. The following individuals can serve as executors: A family member or friend A professional executor or trust company A beneficiary of the will The person chosen as executor should be trustworthy and able to handle financial and legal responsibilities.