The Basics About Trusts

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One of the most important estate planning decisions that you'll make is whether or not to set up a Trust. With a Trust, you can protect your assets and ensure that your loved ones are taken care of, and, while most people know the benefits of a Trust, the process of setting one up is somewhat less well-known. Our network of estate planning attorneys available to you through our Legal Protection Subscription Plans for Individuals & Families can give you advice based on your specific situation, including setting up a Trust or getting your estate planning documents created at no additional charge. Learn more about these benefits of membership, and read on for a few tips on Trusts.

A Trust is an arrangement in which someone manages assets or property for a beneficiary. This person is known as a Trustee, and has a legal obligation to adhere to the terms of the Trust and to manage it according to those terms, as set by the settlor, or the person who creates the trust and puts property into it. Those who will benefit from the Trust are called beneficiaries.

Trusts generally fall into one of two categories: Living Trusts and Testamentary Trusts. As their names might suggest, the main difference between the two is the moment of creation. A Living Trust is created while the settlor is still living, and the terms of this document can be changed over time. Meanwhile, a Testamentary Trust is created upon the settlor's passing and the terms cannot be changed. Trustees of a Trust are appointed in the Will, and will have a legal duty to carry out your wishes exactly.

One of the first questions people ask is how much it costs to set up a Trust, and the answer is, it varies. Depending on the type of Trust you want to create, what assets and properties are going into the Trust, and whether or not you choose to use an attorney or another kind of professional to assist with the process. A simple estate going into a Living Trust that you set up yourself usually costs less than $500. A more complex estate should usually be handled by a legal professional, and depending on how complex the estate is, hiring someone to handle the creation of a complex Trust can be a few hundred to a few thousand dollars. Generally, however, setting up a Trust is not terribly expensive, and it is usually worth the money if your estate is complex or if you are unsure about any part of the process.

Though you are not required to use legal representation to establish a Trust, as mentioned above, if you are unsure about an aspect of the process, it may be best to seek out legal counsel. A lawyer can advise you based on your specific situation and help you choose what type of Trust is right for you and make sure that the necessary paperwork is prepared and handled correctly.

If you have questions about whether a Trust is right for you, our network of experienced, dedicated estate planning attorneys can guide you through the entire process of setting up your estate planning documents, including a Last Will and Testament, Advanced Directives, Living Wills, and give advice about Trusts and other estate planning essentials, critical to your specific situation, all for no additional fee for our members. Learn more about the benefits of being a member of our Legal Protection Subscription Plans and the Estate Planning Benefits, or sign up today!