Trust Based Planning

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Is Trust-Based Planning Right for You?

While every adult should have foundational estate planning documents like a will and powers of attorney, some families require a more robust and customized strategy. For many of our clients, trust-based planning is the key to achieving their specific goals for asset protection, privacy, and control.

What is a Trust?

A trust is a legally binding contract that involves three key parties:

  • The Grantor: The person who creates the trust and transfers their assets into it.
  • The Trustee: The person or institution with a legal (fiduciary) duty to manage the trust’s assets according to the Grantor’s instructions.
  • The Beneficiary: The person or people who benefit from the trust.

In a typical Revocable Living Trust, the Grantor initially serves in all three roles. This allows you to maintain complete control over your assets while you are alive and well, with no need for a separate tax ID number or additional tax filings.

Who Should Consider a Trust?

A trust goes beyond the basics of a simple will. It is a powerful tool for families with specific needs and goals. You should strongly consider incorporating a trust into your estate plan if you:

  • Own real estate in more than one state.
  • Have a complex family situation, such as a second marriage or children from a previous relationship.
  • Are concerned about a beneficiary’s life circumstances, such as their spending habits, a potential divorce, or an addiction.
  • Want to provide long-term asset protection for your spouse, children, or grandchildren.
  • Wish to avoid the public, costly, and time-consuming court probate process.
  • Want to keep your family’s financial affairs private.
  • Need to create a detailed, legally binding plan for your own care in the event of disability.
  • Desire greater control over when and how your legacy is distributed to your loved ones.

The W.G. Alexander & Associates Approach

There are many types of trusts—revocable, irrevocable, joint, and more—each with its own set of advantages. Our experienced attorneys can help you understand the options and design a plan that is tailored to your unique circumstances.

If any of the situations above apply to you, or if you would like to learn more about how trust-based planning can benefit your family, call our office to schedule an appointment.