A trust is a legal agreement between two parties: the trustee and the trustor (sometimes called the settlor or grantor). The trustor is the person who establishes the trust and transfers assets into it. The trustee is the person or entity responsible for managing those assets according to the trustor’s wishes. Often the trustor will also be the trustee, or one of several trustees — until their death or resignation.  

Similar to a will, a trust can have beneficiaries. Those beneficiaries maybe your spouse, children, other family members, close friends, or even a charitable organization. Those named as trust beneficiaries are entitled to receive assets from the trust, based on how you (the settlor) direct the trustee to distribute them.

Some types of assets you may transfer to a trust include:

  • Real property, including homes, land, or investment real estate
  • Deposit accounts held at banks and credit unions
  • Investments, including stocks, bonds, and money market accounts
  • Life insurance policies
  • Business interests and assets
  • Collectibles and antiques

Funding a trust occurs when you transfer assets into the trust and under the control of the trustee. A trust can offer many important planning benefits that are not included in a will.

Note: Any changes to your estate plan must be drafted by your attorney.

This information should not be construed as tax advice, nor should be taken as financial planning advice. Please consult your tax professional. These opinions are based on observations and research and are not intended to predict or depict performance of any investment. These views are as of the close of business on 03/01/2021 and are subject to change based on subsequent developments. Information is based on sources believed to be reliable; however, their accuracy or completeness cannot be guaranteed. These views should not be construed as a recommendation to buy or sell any securities. Past performance does not guarantee future results.

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