What is A Personal Trust and how Does It Work?

A trust is a legal arrangement where a trustee holds and manages assets for the benefit of one or more beneficiaries. The trustee follows the terms specified in the trust document. The grantor of the trust may also be the beneficiary or can designate another, such as a spouse, parent, child or charitable organization.

What is the Difference Between a Will and a Trust?

A will outlines the dealings of asset distribution after death and goes through probate. A trust is active during and after the grantor’s life and skips probate for privacy, and allows ongoing asset management. 

Are There Different Types of Trusts? 

Common types of personal trusts include revocable and irrevocable trusts, living trusts, testamentary trusts, and special needs trusts. Each type of trust serves a different and specific purpose, such as asset protection, estate planning, or providing for specific needs.

Why Would I Need to Set Up a Personal Trust?

Trusts offer various benefits, such as avoiding probate, protection of your assets, ensure privacy, and provide a seamless transfer of assets to listed beneficiaries.

What Happens to a Trust After the Grantor’s Death?

A personal trust generally continues uninterrupted after death. Assets in a trust avoid the potentially costly review by the court known as probate. Trust generally protects your privacy in ways the probate system is not designed to do. Your beneficiaries can have immediate access to funds with confidence that the assets are managed by a trusted representative.

How much does it cost to establish and maintain a trust?

The cost and maintenance of a personal trust can vary based on factors such as complexity, legal fees, and administrative expenses. To better understand the costs associated with a trust, we advise you to speak with one of our experienced financial advisors at one of our branches throughout North Texas.

We look forward to the opportunity to helping you achieve your financial and estate planning goals.