What is a Trust?
A trust is a legal arrangement where one party (the trustee) holds and manages assets on behalf of another party (the beneficiary). Trusts are powerful estate planning tools that offer flexibility, control, and protection that other instruments simply cannot match.
When you create a trust, you transfer ownership of your assets to the trust itself. The trustee then manages these assets according to the instructions you've laid out in the trust document. This arrangement allows you to:
- Control how and when your assets are distributed
- Avoid the time and expense of probate
- Protect assets from creditors and lawsuits
- Provide for loved ones with special needs
- Minimize estate taxes
Types of Trusts We Create
Different situations call for different trust solutions
Revocable Living Trusts
The most common type of trust, allowing you to maintain control of your assets during your lifetime while avoiding probate upon your death.
Irrevocable Trusts
Provides maximum asset protection and tax benefits by permanently removing assets from your estate.
Special Needs Trusts
Allows you to provide for a loved one with disabilities without jeopardizing their eligibility for government benefits.
IRA Trusts
Protects retirement account assets and maximizes the benefits for your beneficiaries after your death.
Charitable Trusts
Allows you to support charitable causes you care about while potentially receiving tax benefits during your lifetime.
Testamentary Trusts
Created through your will and takes effect after your death, often used to provide for minor children or manage inheritances.
Benefits of Creating a Trust
Trusts offer numerous advantages over relying solely on a will for your estate plan. Here's why many families in Tacoma choose to establish trusts:
Avoid Probate
Assets held in a trust pass directly to your beneficiaries without going through probate court. This saves time, money, and keeps your affairs private.
Maintain Privacy
Unlike a will, which becomes public record during probate, a trust remains private. Your assets, beneficiaries, and wishes stay confidential.
Plan for Incapacity
If you become incapacitated, your successor trustee can seamlessly manage your affairs without court intervention.
Control Asset Distribution
You decide exactly how and when beneficiaries receive their inheritance—whether all at once, at certain ages, or for specific purposes.
Trust vs. Will: Understanding the Difference
Both trusts and wills are essential estate planning tools, but they serve different purposes and offer different benefits.
Will
- Only takes effect after death
- Must go through probate court
- Becomes public record
- Names guardians for minor children
- Generally less expensive to create
Trust
- Takes effect immediately upon creation
- Avoids probate entirely
- Remains private
- Provides incapacity planning
- More control over distribution
Most comprehensive estate plans include both a will and a trust. Contact us to learn which combination is right for your situation.