Practical Benefits of Living Trusts

Over the years our clients have recognized the many advantages of establishing a living trust with us. We would like to share some of the benefits of our living trust services with you and then meet with you to discuss how a living trust can be structured to meet your needs.

What is a living trust?

A few key facts: First, the arrangement begins with the transfer of property that will make up what is often referred to as the trust’s principal. Living trusts can be funded with securities, other property or money that you have available for investment.

This property is managed and administered by us as trustee. We manage the trust by following the directions that you have established in a trust agreement. For instance, the
agreement can direct us about how and when the income from the trust should be distributed to the income beneficiaries, how to invest funds added to the trust and when to pay out any amounts that you may wish to withdraw over time.

The agreement also will provide us with directions as to what to do at your death. Perhaps it may call for your spouse to receive the trust income, and call for the trust to terminate at his or her death, with funds to be divided among your children (the remainder beneficiaries). There are thousands of possible variations. No framework for personal financial planning is more versatile.

And none is more flexible. The kind of trust that we’re describing is a revocable living trust. Revocable means that you can change beneficiaries, alter any other instructions contained in the trust agreement or even cancel the trust should the arrangement ever cease to meet your needs.