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Estate Planning & Elder Law Blog

Wednesday, May 29, 2019

How Does a Trust Work?

Trusts are valuable tools if you want to ensure your children or other relatives receive their share of your estate.

Trusts can be independent from a last will and testament but often work hand-in-hand with them.

Often, trusts are used to ensure that children or grandchildren have the funds they need to go to college, or to fund a local charity, provide a down payment on a business or home, or event to provide a safety net for your assets as you age.  And this is not nearly all the ways a trust can be used.  Trusts are incredibly versatile financial tools that will offer long-term benefits to those who receive them. 

Here is a short article covering the nuts and bolts of how a trust works.

 

Placing Assets in a Trust

If you decide to put your assets in a trust, you will need to determine what type of trust to choose.

Living trusts are established during your lifetime. You will maintain control over the assets that are placed within the trust, allowing you to add or remove them as needed.

A testamentary trust is established after your death as part of your last will and will ensure that the chosen beneficiary receives their portion of your estate in the manner set within your will. They may receive a large part at the beginning followed by smaller amounts over time or when they receive a designated age.

There are, as mentioned earlier, many more types of trusts to consider.  Contact us today and we can go over what kinds of trust would meet your needs.  In the meantime, here’s some more information on trusts for you.

 

Maintaining Control of Your Assets

Living trusts allow you to maintain control of your assets. Because this type of trust is established during your lifetime, you have the option of continuing to use the assets or to set them aside and allow them to build interest.

As long as you are alive, you will have access to the assets held within the trust. You can add or remove things as needed. You can also close the trust if you change your mind and decide to alter how your money is dispenced, or if you need the funds for personal use.

 

Trusts as Part of a Will

Testamentary trusts allow you to provide for the needs of a loved one in a structured and secure manner. Trusts can be set up in a variety of ways, depending on the situation. If you have young children or grandchildren, establishing a trust through your will ensures that their financial needs are taken care of after you have passed away. Your testamentary trust may include securing their care and meeting their needs if they are a minor. 

One example of how a testamentary trust might be used: establishing a college fund that will enable someone to afford for their college and living expenses.

 

Taking Care of Those You Love

Trusts are a great way to secure the future of your loved ones. For parents with young children, creating a trust through their last will enables them to make sure all of the expenses of taking care of their minor children are taken care of, allowing the children to live as full a life as possible.

 

Call Yana Feldman & Associates if You Want to Learn More!

If you have questions about establishing a trust (either living or testamentary), contact Yana Feldman & Associates today!

We have over 15 years of experience supporting families like yours.  And we understand how important it is to take care of your family.

Trusts are just one of many types of financial resources you can use to secure the future of your loved ones. It’s essential that you work with an attorney who specializes in this type of law.

Call and schedule a consultation today.






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