Understanding trusts is crucial for anyone considering estate planning. If you’ve been wondering “what are trusts and how do they work,” this guide explains everything you need to know about trust funds, living trusts, and estate planning trusts.
What is a Trust? Definition and Basics
A trust is a legal agreement, typically written, where the trust creator (grantor) dictates how their assets will be managed and distributed. According to estate planning attorney Kellen Bryant, trusts provide a structured way to control your wealth and property.
How Do Trusts Work? The Three Key Parties
1. The Grantor (Trust Creator)
The grantor creates the trust agreement and determines how assets will be controlled. This person sets all the rules for the trust.
2. The Trustee
The trustee manages the trust assets and has legal responsibility for following the grantor’s instructions. They control the money and property on behalf of beneficiaries.
3. The Beneficiary
Beneficiaries are the people who receive benefits from the trust. The trustee manages assets specifically for their benefit according to the trust terms.
Benefits of Creating a Trust for Estate Planning
Why do people create trusts? Estate planning trusts offer several advantages:
- Avoid probate court proceedings
- Reduce estate taxes
- Protect assets from creditors
- Control how and when beneficiaries receive inheritance
- Maintain privacy in estate matters
Types of Trusts: Living Trusts vs Other Trust Options
There are many types of trusts available for estate planning, including revocable living trusts, irrevocable trusts, and special needs trusts. Each serves different purposes in comprehensive estate planning.
Should You Consider a Trust for Your Estate Plan?
Trusts aren’t right for everyone, but they can provide significant legal and financial benefits. The purpose of creating a trust is generally to obtain some positive legal effect for your estate planning goals.
If you’re considering trust planning in Jacksonville, Florida or anywhere else, consult with an experienced estate planning attorney who can evaluate whether a trust fits your specific situation and financial goals.
Next Steps: Estate Planning and Trust Creation
Ready to learn more about trusts and estate planning? Contact a qualified estate planning attorney to discuss your options and create a comprehensive plan that protects your assets and beneficiaries.
Author Bio
Kellen Bryant, Esq.
Founder
Florida Bar Board Certified Elder Law Attorney, Kellen Bryant focuses his law practice on advising and helping caregivers with a particular focus on asset protection and preservation from long-term care costs, creditors, and predators. Kellen Bryant is AV Preeminent® Rated, meaning his attorney peers rated him at the highest level of professional excellence. Kellen Bryant was nominated and selected as a Super Lawyer, Rising Star: 2022.
