Why Trusts Are a Powerful Part of Estate Planning
Whether you’re just beginning your estate planning or reviewing an existing plan, you likely have questions about how to distribute your assets and who should handle the process. A trust is one of the most powerful tools you can use.
A trust gives you and your family more control, privacy, and options than a will. Unlike a will, a trust keeps your estate out of probate—a process that can be costly, slow, and public. When you create a trust, you still need a will, but it becomes a pour-over will, which moves any remaining assets into the trust after you pass away. You choose the type of trust based on how and when you want to distribute your assets.
Understand the Types of Trusts
A trust is a legal arrangement with three main players:
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Trustor (Grantor): You, the person creating the trust.
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Trustee: The person or institution managing the trust’s assets.
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Beneficiaries: The individuals or organizations who receive the trust’s assets.
You can sometimes fill more than one role—for example, you can serve as both the trustor and trustee while you’re alive.
Common Types of Trusts:
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Living Trust: Lets you control your assets during your lifetime and decide how to distribute them after death.
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Testamentary Trust: Forms through your will and starts after you die.
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Revocable Trust: Lets you change or revoke it during your life.
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Irrevocable Trust: Locks in your instructions, protecting assets from creditors, taxes, and helping with Medicaid planning.
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Qualified Income Trust (Miller Trust): Helps people over Medicaid income limits stay eligible for benefits (not available in all states).
Benefits of Creating a Trust
Trusts offer big advantages compared to wills:
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Skip Probate: Your beneficiaries receive assets faster and privately.
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Protect Loved Ones: Provide for minors, people with disabilities, or beneficiaries who need help managing money.
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Plan for Medicaid: Move assets into trust in advance to protect them if you need long-term care.
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Cut Taxes: Reduce estate and gift taxes to preserve wealth for your heirs.
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Avoid Conflict: Clearly outline your wishes to prevent family disputes.
The Trustee’s Role
The trustee’s job is to actively manage the trust and carry out your instructions. They:
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Oversee investments and trust property
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Distribute funds to beneficiaries based on the trust’s terms
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Pay taxes, track expenses and income, and report to beneficiaries
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Protect government benefits for special needs beneficiaries by following trust rules
You decide how much discretion your trustee has—either broad flexibility or strict limits, like only using funds for education or health care.
Choosing the Right Trustee
Choose a trustee who will act responsibly and honor your instructions. You can select:
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A trusted family member or friend
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A professional trustee, such as a bank or trust company
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Yourself, if it’s a living trust, with a successor trustee to step in later
You can also appoint co-trustees—a great option for younger beneficiaries. For example, pair a young beneficiary with an experienced co-trustee until they’re ready to manage the trust on their own.
Take Action
A trust does more than transfer assets—it protects your legacy, minimizes conflict, and ensures your wishes are followed. Work with an experienced estate planning attorney to create the right trust and choose the right trustee.
📞 Call us at (207) 848-5600 or visit our CONTACT page to schedule a consultation and create a plan that works for you and your family.
