Adding a trust to your estate plan is a big decision, as this will alter the moves you make today and in the future. It also changes what happens to your estate upon your passing.
If you're interested in setting up a trust, it's important to understand the process for doing so.
Regardless of the type you choose, there are a variety of common features that typically come into play when creating a trust.
A trust is nothing more than the transfer of ownership of assets from a trustor, who is the person creating the trust, to a trustee, who is the person responsible for the management of the trust. Furthermore, the assets within the trust are held for the beneficiary.
There are many factors that influence the process you follow to set up a trust, including:
- Your age
- Size of the estate
- Your marital status
- Number of beneficiaries
- Type of trust
There's a lot that goes into creating a trust, so you need to give yourself enough time to make all the right decisions. For example, naming a trustee is easier said than done, as this person is staffed with many responsibilities. Naming the wrong person could cause you and/or your beneficiaries trouble in the future.
Even if you never end up creating a trust, it's a good idea to learn more as to better understand how it compares to a will. As you collect guidance regarding the creation process, while also focusing on your legal rights, everything will come together and you'll find yourself in a position to make a decision on what to do next.