Legal / By Angela Gaddis Moore, Esq.

                         Planning Ahead:  What’s the Purpose of a trust?
                                             By Angela Gaddis Moore, Esquire

Over the next few issues of SoLo Parenting Magazine, we will cover one of each of the four basic types of estate planning documents to include Wills, Trusts, Powers of Attorney and Advance Medical Directives.  Last month we looked at the necessity of a Will. 

THIS MONTH’S FOCUS IS ON TRUSTS
 A trust is a means of long-term planning for your assets during life and death.  Trusts allow more flexibility in the distribution of your financial legacy.  They can be revocable or irrevocable.  And, trusts contain specific instructions on how to manage and distribute your assets in the event of disability or death.  Similar to a will, a trust allows you to be in the driver’s seat of what you desire to happen with your estate. 

SO, WHAT ARE SOME ADVANTAGES TO HAVING A TRUST?  

• First, the assets in the trust are taken care of by the trustee which is you, until you are no longer able to do so. 
• Second , there is no need for a court appointed conservator to handle your finances if you become disabled.  Property owned by the trust avoids the need for a conservator, as the specified successor Trustee can mange the trust’s financial affairs without court intervention.  Further, the trust can provide for your support, health, and maintenance; and the same for your spouse and children without outside agents being appointed.
• Third, a trust does not have to be probated (a legal process initiated by family in the local court system to distribute your remaining assets) like a Will.
• Fourth , a trust provides more privacy.  Generally, it remains a private document, whereas, the probate process is a matter of public record.
•  Fifth, a trust can extend through generations of your family and provide resources to them.
• Sixth, a trust is less costly long-term since there are no probate costs.

  FUNDING A TRUST
  Funding a trust requires changing the title of your assets from your name to the name of your trust, i.e. SARA BROWN DECLARATION OF TRUST.  As Trustee you will keep control over everything contained in the trust.  Funding sources include real estate, checking and savings accounts, certificates of deposits, life insurance, stocks and bonds, mutual funds, furniture, art and jewelry just to name a few.

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