Setting up a trust can feel overwhelming, but it’s a decision that provides security and peace of mind for you and your loved ones. At Jordan & White, we’ve spent over a decade helping Massachusetts families protect their legacies and create estate planning with care and ease.
Establishing a trust is one of the most effective ways to ensure your assets are managed and distributed according to your wishes—without the hassle of probate court.
Let’s walk you through what a trust is, why it matters, and how you can set one up with confidence.
Why Consider a Trust?
Trusts are for anyone who wants to protect their assets, streamline the inheritance process, and maintain control over their estate. It’s not something exclusive for the wealthy. Here are some of the main advantages of setting up a trust:
Avoid Probate
Probate can be a lengthy, costly, and public process. A trust keeps your estate private and allows your devisee to access their inheritance without unnecessary delays.
Protect Your Assets
Trusts safeguard your assets from creditors and legal claims, ensuring they stay with your loved ones.
Maintain Privacy
Unlike wills, which go through probate and become public record, trusts keep your financial matters confidential.
Tax Considerations
While trusts may offer certain tax benefits, it’s essential to consult with a tax professional to fully understand your options.
Provide for Loved Ones
Trusts can manage funds for minors, individuals with special needs, or devisee who may not be ready to handle their inheritance responsibly.
Setting up a trust is about taking control of your future. Whether you’re protecting a family home, planning for your children’s education, or ensuring the care of a loved one, a trust is a flexible and powerful tool.
Steps to Set Up a Trust
Creating a trust may seem complicated, but breaking it into manageable steps can simplify the process:
Define Your Goals
Start by identifying what you want your trust to accomplish. Do you want to protect your home? Support a child with special needs? Provide for a charitable cause? Your goals will determine the type of trust you need.
Choose the Right Type of Trust
Not all trusts serve the same purpose, so it’s important to understand your options before deciding. The right trust will depend on your specific needs, goals, and the people or causes you want to provide for. Let’s explore some of the most common types of trusts and how they can work for you:
- Revocable Living Trust: Offers flexibility and can be changed or canceled during your lifetime.
- Irrevocable Trust: Provides stronger asset protection but cannot be easily altered once established.
- Special Needs Trust: Designed to support a beneficiary with a disability without jeopardizing government benefits.
- Testamentary Trust: Created through your will and activated after your passing.
Select a Trustee
Your trustee will manage the assets in your trust. This could be a trusted individual, such as a family member or friend, or a professional trustee, like a bank or trust company. Choose someone reliable and capable of fulfilling your wishes.
Draft Your Trust Document
Working with an experienced attorney ensures your trust document is legally sound and tailored to your needs. We’ll help you outline specific terms, like how and when assets will be distributed.
Fund the Trust
To make the trust functional, you’ll need to transfer ownership of your assets to the trust. This step might include retitling property deeds, updating account devisee, or assigning other assets to the trust.
Administer the Trust
Trust administration continues throughout your lifetime or until the terms of the trust are fulfilled. Regular reviews of your trust can help ensure it still aligns with your goals.
What Shouldn’t Be Included in Your Trust?
Not every asset belongs in a trust. Some items are best managed separately to avoid complications:
- Life Insurance Policies: These often pass directly to designated devisee and don’t require inclusion in a trust.
- Retirement Accounts: Accounts like IRAs or 401(k)s should remain outside the trust but may name the trust as a beneficiary.
- Jointly Owned Property: Assets with survivorship rights automatically transfer to the other owner.
Ambiguity or unclear provisions in your estate plan can create confusion or disputes. At Jordan & White, we ensure your trust and related documents are drafted with clarity and precision.
Is a Trust Right for You?
While trusts offer many advantages, they aren’t the right fit for everyone. Consider factors like your estate size, family dynamics, and specific goals. Life events such as marriage, divorce, or the birth of a child may also impact your decision.
Regularly reviewing and updating your estate plan is just as important as creating it. An outdated plan can lead to unintended consequences, so let’s ensure your documents stay current.
Let Jordan & White Help Secure Your Future
At Jordan & White, we understand that every family is unique. For over 13 years, we’ve helped Massachusetts families build personalized estate plans that offer peace of mind and security. We make the process simple, approachable, and easy to understand.
If you’re ready to set up a trust or have questions about estate planning, we’re here to help. Call us today at 978-744-2811 or visit our website to schedule a consultation. Together, we’ll create a plan that protects your legacy and provides for the people you care about most.