Laura Jones
Senior Trust Officer

1) What is a trust and its benefits?

A trust is a legal structure created to hold property to benefit an individual, group of individuals, or entity. Trusts may be established for a multitude of reasons and may be effective during the life of an individual (inter vivos) or at his/her death (testamentary). Trusts may be used for tax benefits and for personal reasons. Trusts can provide a level of confidentiality not available through the probate process. The language of a trust provides a trustee with a roadmap to follow in holding funds and distributing funds to/for benefit of the beneficiary(ies).

2) How do I know if a trust makes sense for me?

You should talk with a trusted financial advisor and/or with an attorney specializing in the area. Consulting with a professional with knowledge of your personal and financial circumstances will allow you to understand the benefits and limitations of using various types of trusts.

3) How do you establish a trust (and what parties are typically involved in that process)?

Contact an attorney specializing in trust planning. A trust must have a grantor (someone establishing a trust); a trustee (someone holding the assets and administering them as the trust directs); and a beneficiary (individual or entity receiving the benefit of the trust assets). An individual may serve as trustee, or a corporate trustee may be preferred depending on the trust. In some types of trusts one individual may serve multiple roles.

4) What are important things to know about a trust?

Before executing a trust be sure you understand what you are signing and the practical application. Some trusts cannot be amended after execution. Do not be afraid to ask questions of the attorney preparing the trust. You can also take a draft of the trust to your financial advisor for review and ask them any questions you have. Ask all your questions until you are completely comfortable with the document.