Can A Trust Really be Trusted?


     When thinking of a Trust, most people feel that it is a tool used only by the very rich. That can be true, but a Trust is also a very useful option for all no matter what your financial standing. There are a variety of Trusts that can be created for different reasons. The options can be a little overwhelming. Before making a decision, it is necessary to discuss with your Qualified Tax Professional what your goals are. When you clearly have in mind what you want the outcome to be, then it will become easier to make the right choice.

     This post will give a brief overview of what Trusts are and how they work. In general, there are 2 types of trusts. A living trust is created while the person who created it is alive. It can be cancelled or changed while they are still living. A testamentary trust goes into effect when its creator dies. At that point it cannot be changed. The basic idea behind a trust is to put any assets (cash, property, stocks, business) into the hands of a trustee. They in turn will follow specific rules in caring for it for the beneficiary.

     There are many different detailed types of trusts that we will not discuss in this post. If you would like us to do another post in the future, please comment below.

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