Do You Need a Trust?
Should you have a will? Absolutely.
Should you also have a trust? Maybe.
A revocable trust, also known as a living trust, offers a more comprehensive approach to managing your assets during your lifetime and distributing them after your passing.
Reasons You May Want a Trust
- Protect your privacy. A will becomes a public record upon probate, which is a court-supervised process to administer an estate. Assets placed in trust, however, bypass probate. This allows you to keep your matters private.
- Plan for incapacity. You can appoint a successor trustee to step in and manage the trust on your behalf should you become unable to do so.
- Ensure management of a complicated estate. If you own complex assets or real estate in more than one state, a trust can help streamline the management and distribution of these assets.
What Should You Transfer Into a Trust?
Who Manages the Trust?
A trustee is responsible for managing the trust assets. You can name yourself, a trusted friend or a financial institution as trustee.
Think a trust might be for you? If you would like personalized guidance setting up a trust, a qualified estate planning attorney can help.
Making a Gift to Our Organization Is Easy
In as little as one sentence, you can include a gift to the National Fallen Firefighters Foundation in your will or trust and make a long-lasting impact. We’re happy to answer any questions you may have as you consider this. Contact us at (443) 302-2909 or aesposito@firehero.org.
Wills vs. Trusts: Know the Difference
| Will | Trust | |
|---|---|---|
| Probate and privacy | Subject to probate; your will becomes public record in these proceedings | Provides faster, more private distribution of assets by bypassing probate; all details remain confidential |
| Asset management and distribution | Specifies how assets are distributed after your lifetime | Outlines asset management and distribution during and after your lifetime |
| Control over distribution | Limits control over timing and method of distribution | Allows for greater control over timing, method and conditions of distributions |
| Executor/trustee | Requires appointment of executor or personal representative to administer will | Requires appointment of trustee to manage trust assets |
| Incapacity planning | No instructions for managing assets in the event of incapacity | Trustee will manage your assets if you are unable to handle your financial affairs |
| Costs | Generally lower initial cost compared with trusts | Likely to have higher initial cost but can offer potential savings by avoiding probate |
Information contained herein was accurate at the time of printing. The information in this publication is not intended as legal or tax advice. For such advice, please consult an attorney or tax advisor. Figures cited in any examples are for illustrative purposes only. References to tax rates include federal taxes only and are subject to change. State law may further impact your individual results.
