Trusts 101: Your Guide to Understanding and Creating Trusts

:closed_book:A trust is a contract between the grantor, trustee, and beneficiaries that allows you to control your assets.

:earth_americas:There are two main types of trusts: death trusts and living trusts. Living trusts offer more control and flexibility.

:balance_scale:Revocable living trusts are commonly used for probate avoidance and asset distribution after death.

:lock_with_ink_pen:Irrevocable living trusts provide asset protection during your life and for your loved ones after your death.

:money_with_wings:Properly funding your trust is essential to ensure its effectiveness and avoid probate.

What is a trust?

—A trust is a contract that allows you to control your assets and specify how they should be managed and distributed.

Are there different types of trusts?

—Yes, there are two main types of trusts: death trusts and living trusts. Living trusts are more commonly used.

What is the purpose of a living trust?

—A living trust allows you to manage your assets during your life, avoid probate, and provide for your loved ones after your death.

Do revocable living trusts provide asset protection?

—No, revocable living trusts do not provide asset protection during your life. They are mainly used to avoid probate.

How do I fund my trust?

—To fund your trust, you need to transfer your assets into the trust, such as bank accounts, real estate, and investments.

00:00A trust is a contract that allows you to control your assets and specifies how they should be managed and distributed.

02:27Living trusts are more commonly used than death trusts. They offer more control and flexibility.

04:27Revocable living trusts are primarily used for probate avoidance and asset distribution after death.

06:46Irrevocable living trusts provide asset protection during your life and for your loved ones after your death.

09:28Beneficiary designations do not provide the same level of asset protection as a properly funded trust.