NOTICE: These FAQ pages provide informal guidance and should NOT be relied upon as legal advice. Submit a Client Intake Form or contact our office if you need legal counsel.

  • Who should have trust?
  • Who is the Trustee?
  • What is a trust?
  • What are some common types of trusts?
  • When should I establish my trust?
  • Where should my trust be located?
  • Why should I have a trust?

  • Who should have trust?

    • You should consider creating a trust if:
    1. You wish to avoid probate and are concerned about the privacy of your affairs.
    2. You have a distribution plan that is too complex for a simple Will.
    3. Your estate will be subject to estate tax.
    4. You need asset protection planning.

  • Who is the Trustee?

    • The Trustee is the person who is legally responsible for the trust assets. The Trustee must hold, invest, and distribute the trust assets according to the terms of the trust.

  • What is a trust?

    • A trust is a legal arrangement where the owner of assets chooses a person, the Trustee, to manage those assets according to the terms of the trust. Typically, the trust will pay the income generated by the assets to a beneficiary (often a spouse), and then distribute the remaining assets to another beneficiary (often the children) at some future time.

  • What are some common types of trusts?
    1. A Living Trust, also known as a revocable trust, is often used to manage assets and to avoid probate.
    2. A Minor's Trust is used to hold assets for the benefit of your young children.
    3. An Irrevocable Life Insurance Trust (ILIT) is used to hold your life insurance policy so that the death benefit will not be subject to estate tax.
    4. A Credit-Shelter Trust (CST) is used by married couples to minimize estate tax by making full use of the estate tax exemption for both spouses.
    5. A Qualified Terminable Interest Trust (QTIP) is used by married couples to control your assets after death while minimizing estate tax.
    6. A Qualified Domestic Trust (QDT) is used to minimize estate tax for when a surviving spouse is not a US citizen.

  • When should I create my trust?
    1. You should consider creating a Living Trust if you wish to avoid probate or are concerned about the privacy of your affairs.
    2. A Minor's Trust is created in your Will and only comes into existence upon your death.
    3. You should consider creating an Irrevocable Life Insurance Trust (ILIT) when purchasing your life insurance.
    4. A Credit-Shelter Trust (CST) is created in your Will and only comes into existence upon your death.
    5. A Qualified Terminable Interest Trust (QTIP) is created in your Will and only comes into existence upon your death.
    6. A Qualified Domestic Trust (QDT) is created in your Will and only comes into existence upon your death, or is created by your non-citizen spouse shortly after your death.

  • Where should my trust be located?

    • Generally, you should create your trust in your State of residence. In some circumstances (such as for asset protection planning or to avoid probate) you will create your trust in some other jurisdiction.

  • Why should I have a trust?

    • You should have a trust if:
    1. You wish to avoid probate and are concerned about the privacy of your affairs.
    2. You have a distribution plan that is too complex for a simple Will.
    3. You will be subject to estate tax.
    4. You need asset protection planning.

    Complete our Will Intake Form to begin creating your Trust »