Everything About Trusts: The Ultimate Financial Protection For Your Family

A trust is an arrangement that, after your death or during your incapacity, allows a third party (called a trustee) to hold onto assets for beneficiaries. When establishing a trust, you can specify exactly how and when your assets will be passed onto your loved ones.

Our trust attorneys have extensive experience helping clients establish and implement trusts that save families time, money, and the stress of probate. 

Benefits of Establishing a Trust

Some of the many benefits of trusts include:

• Avoid probate: Probate is an extremely long and expensive court-supervised legal process for administering a deceased person’s estate. Trusts can generally prevent your family from going through probate, which allows them to gain access to your assets more quickly and without paying court fees.
• Flexible Control of Your Assets:
  By using a trust, you control exactly when and how your assets are distributed. Want your child to receive funds for education first, then for starting a business later? You can specify that. Revocable trusts even let you access and manage your assets while you’re alive, so you maintain full control over your finances without restricting your family’s future.
• Protection:
  A trust provides an extra layer of protection for your loved ones. If a beneficiary struggles with money management, faces legal issues, or has creditors pursuing them, the trust safeguards your assets and ensures they are used exactly as you intended. This gives you security knowing your family is supported and protected, even in problematic circumstances.
• Privacy:
  By avoiding probate, a trust keeps your estate matters private and out of the public court record. Unlike wills, which become public documents during probate, trusts ensure that the details of your assets, distributions, and family arrangements remain confidential. This protects your family from unnecessary scrutiny or disputes and keeps your personal affairs discreet.

We ensure your trust is established correctly so your family can focus on what matters most—each other, not paperwork.

Key Differences Between a Revocable Trust and an Irrevocable Trust

• Revocable Trust: You remain in charge of your assets. You can modify, update, or revoke the trust at any time, giving you the flexibility to adjust your plan as your family or financial situation changes. This is ideal if you want to maintain full decision-making authority while still protecting your loved ones.

• Irrevocable Trust: Once you establish it, you generally give up direct control of the assets. Changes require consent from beneficiaries or court approval, making it a stronger tool for protecting your estate and shielding assets from certain risks.

• Revocable Trust: You still technically own the assets in the trust during your lifetime, and you can use them, sell them, or manage them as you wish. This keeps your estate flexible and accessible while still setting rules for how assets are handled after your passing.

• Irrevocable Trust: The assets are separated from your estate and no longer owned by you. This makes it harder for creditors to reach them and can provide long-term protection for your beneficiaries, even if your estate faces lawsuits, debts, or other claims.

Both revocable and irrevocable trusts help your family avoid the delays and public nature of probate, but in different ways:

• Revocable Trusts: Assets in the trust pass directly to your beneficiaries, bypassing the court process. Your family gains faster access to property or funds without extra legal hurdles.

• Irrevocable Trusts: Because the assets are removed from your estate, they completely bypass probate. This offers a high level of protection and ensures your beneficiaries receive their inheritance efficiently and privately.

• Revocable Trusts: Do not offer immediate tax benefits because you still own the assets and report the income on your personal tax return.

• Irrevocable Trusts: Can provide potential tax advantages, such as reducing estate taxes or protecting assets from creditors. This makes it an effective tool for families looking to preserve wealth for future generations.

• Revocable Trusts: Do not help with Medicaid eligibility because assets are still considered part of your estate.

• Irrevocable Trusts: Can be used strategically to meet Medicaid eligibility requirements by transferring assets out of your estate while still providing for your family’s needs. This is particularly important for families planning for long-term care or nursing home costs.

Revocable Living Trusts

A revocable living trust is created while you’re alive and can be modified over time. You act as both trustee and beneficiary, with the ability to amend the terms as your circumstances change. This trust is flexible, protective, and avoids probate, giving your loved ones a smooth transition without court delays.

Family Bank Trusts

High-net-worth families or those in high-risk professions can benefit from a Family Bank Trust (FBT). Assets transferred into an FBT remain accessible to beneficiaries but are protected from creditors and do not incur federal estate taxes on transferred funds.

Grandchildren’s Trusts

Instead of relying on UTMA or UGMA accounts, a grandchildren’s trust can safeguard assets until they’re needed. These trusts prevent mismanagement and protect assets from legal claims, divorces, or business failures while supporting education, business ventures, or other planned uses.

How Do You Fund a Trust?

Creating a trust is important—but it’s only effective if you actually transfer your assets into it. Funding a trust means giving legal ownership of your property, accounts, and valuables to the trust, so your instructions are enforceable.

1. Real Estate
   Re-title your home or land in the name of the trust. This ensures your property passes according to your directions without going through probate.
2. Bank and Investment Accounts
   Transfer accounts to your trust or designate the trust as beneficiary. This allows seamless management and distribution without probate delays.
3. Business Interests
   Ownership of shares, partnership stakes, or membership units can be moved into a trust, preventing disputes and ensuring continuity for your business.
4. Personal Property
   Items like art, jewelry, vehicles, or collectibles can be funded into the trust to protect them and ensure they reach the intended beneficiaries.
5. Life Insurance
   Naming the trust as a policy beneficiary ensures proceeds follow your instructions, offering financial security to your loved ones while avoiding probate complications.

Tips for Funding Successfully:

• Work with an attorney or financial professional to ensure proper transfers.

• Keep detailed records of all funding actions.

• Update your trust as new assets are acquired.

Funding your trust turns a legal document into a practical tool that protects your family and preserves your legacy.

Interested In Creating A Trust?

Funding and managing a trust may seem complicated, but it doesn’t have to be with the proper legal support. At our firm, we guide you every step of the way, helping you choose the right trust, fund it correctly, and ensure your family is protected.

Contact Us Today