Trust & Estate FAQs
Estate Planning Basics
What is estate planning, and why is it important?
Estate planning is the process of organizing your assets and documenting how they should be managed during your lifetime and distributed or managed at death. A thoughtful estate plan can:
- Ensure your wishes are carried out
- Reduce delays and expenses for your family
- Provide guidance in the event of untimely death or incapacity
- Help preserve assets for future generations
What is probate?
Probate is the court-supervised process of validating a will, settling debts, and distributing assets. Probate can be time-consuming, public, and costly, which is why many people use trusts to help minimize or avoid it.
What is the difference between a will and a trust?
A will is a legal document that directs how assets are distributed after death and typically goes through probate.
A trust is a legal arrangement where a grantor, the person who creates the trust, transfers assets to a trustee, the person that holds and manages the assets of the trust, for the benefit of designated beneficiaries. A trust can manage assets during your lifetime and—unlike a will—after death, often avoiding probate for trust-owned assets.
Many estate plans use both tools together to create a comprehensive estate plan that leverages the unique strengths of each document.
Can I keep control of my trust?
Yes—depending on the type of trust you establish. With a revocable trust, you generally retain the ability to:
- Add or withdraw assets
- Change beneficiaries
- Amend the terms of your trust
- Revoke the trust entirely
An irrevocable trust typically limits changes after it is created, but it may offer benefits related to taxes or asset protection. Your attorney and/or tax advisor can help determine which structure is appropriate for your situation.
What happens if someone dies without a will?
If a person dies without a valid will, they are considered to have died “intestate.” In that case, state law dictates how assets are distributed, which may not reflect the person’s wishes.
Are there other documents that are vital to estate planning?
Aside from establishing a will and trust, a power of attorney and an advance healthcare directive are key components of planning for incapacity.
A power of attorney is a legal document where you authorize someone you trust (your “agent” or “attorney-in-fact”) to act on your behalf for specific or general matters, such as financial or healthcare decisions, if you become unable to do so yourself.
An advance healthcare directive is a legal document that details your future medical care if you’re incapacitated, typically including both a living will and healthcare power of attorney. The living will details your preferences for life-sustaining treatments in specific end-of-life scenarios, such as terminal illness or permanent unconsciousness.
How often should I review my estate plan?
You should review your estate plan at least once a year, or sooner if you experience major life changes such as marriage, divorce, the birth of a child, a significant change in assets, or change in tax laws.
Getting Started with a Trust
Is it difficult to create a trust?
No. Establishing a trust is typically straightforward. Your attorney prepares the trust agreement, which outlines your instructions. Once you sign your trust, our Wealth Management professionals can assist in making sure your trust is funded—the process of transferring or titling assets into your trust—and that the trust aligns with your overall financial and estate planning goals. Also, depending on the type of trust you establish, our team can begin serving as trustee to ensure your assets are managed in accordance with the terms of your trust.
What are the benefits of establishing a trust?
A trust can provide flexibility, control, and continuity in managing your assets. Depending on how it is structured, a trust may help you:
- Manage investments
- Maintain control of your assets after you are gone
- Provide for loved ones during and after your life
- Avoid probate for trust assets
- Plan for incapacity
- Establish long-term financial support for beneficiaries
- Maintain privacy
- Protect assets from creditors, divorce, and lawsuits
- Coordinate tax planning and asset distribution
Overall, trusts can be used in a variety of ways and can be tailored to meet your unique estate planning objectives.
How much money do I need to establish a trust?
There is no one-size-fits-all minimum. When most people hear the word “trust,” they think of millions of dollars; however, trusts are no longer limited to ultra-wealthy individuals and families. In fact, we have developed ways to efficiently manage trusts of almost any amount, including trusts will limited assets. The decision to establish a trust is less about asset size and more about whether a trust is the most effective way to meet your financial, estate, and family needs. Our Wealth Management team is always here to help you determine if a trust makes sense for your estate planning goals. to speak to one of our trust professionals today.
Are there different types of trusts?
Essentially, there are two basic types of trusts.
1. Revocable Trust
A revocable trust is a trust you can change or cancel during your lifetime. This type of trust allows you to remain both the trustee and the beneficiary of the trust while you’re alive. Similar to a will, a revocable trust can also be used to transfer assets at death, yet without the formal, court-supervised process of probate. Once you pass away, your wishes are final and thus the trust becomes irrevocable. When the trust becomes irrevocable, a designated successor trustee manages and/or distributes the trust assets according to the terms set in your trust, avoiding a slow and expensive probate process.
2. Irrevocable Trust
Generally, an irrevocable trust cannot be changed or canceled at any time. However, the terms of many irrevocable trusts usually provide tremendous flexibility. While many irrevocable trusts come into being at death, irrevocable trusts established before death are often used to hold life insurance policies, gifts of assets to be made available to beneficiaries at a future time, funds for future charitable contributions, and provide some creditor protection to the grantor.
How do I choose a trustee or successor trustee?
While it may be comforting to name a relative or a close friend as your trustee, it’s important to carefully consider your choices. This is especially trust because the responsibilities of trustees have become increasingly complex and time-consuming as there are many laws and regulations that together define the duties of trustee. There are several factors to consider when selecting a trustee or successor trustee, including:
- The knowledge to handle the legal and regulatory requirements of your trust.
- The experience and resources to protect and manage all asset classes.
- Whether they can administer your trust objectively and impartially—an approach you may not find with a trustee who is also a family member or friend.
- Whether they can assume the legal responsibility for the proper administration of a trust.
- The ability to administer your trust for as long as it exists.
Our dedicated Wealth Management professionals have the experience and resources to manage and administer each aspect of your trust. As each trust is a unique document, our team tailors the services we provide to properly manage your assets based on your wishes and to fit the needs of the designated beneficiaries of your trust. to learn more about the trust services our Wealth Management team provides.
Are trustee services expensive?
Trustee fees are generally competitive with other professional investment and fiduciary services. Fees reflect the scope of the services provided, which may include investment management, custody of assets, recordkeeping, tax reporting, and fiduciary oversight. We have complete transparency about trusteeship fees, and our team will be glad to discuss the scope of the services we provide and our fees for such services with you.
Do I need a trust to work with Wealth Management’s investment professionals?
No. A trust is not required to use our investment services. Many clients choose trusts because of the additional benefits they offer, but we also provide investment services through brokerage or advisory relationships.
Investment & Asset Management
What happens to my investments held in my trust?
In general, the trustee is ultimately responsible for the preservation and investment of assets in your trust, ensuring that invested assets are productive and managed appropriately given the trust’s objectives. The trustee has the legal responsibility to reassess the objectives of the trust and current market conditions regularly, and to be sure that the investments match those objectives.
What kind of investment return can I expect?
Investment returns depend on your objectives—such as income, growth, or a combination of both—as well as market conditions. Historically, diversified portfolios have produced varying returns depending on asset allocation and time horizon. As trustee, our goal is to purse long-term, risk appropriate results aligned with your stated objectives through disciplined investments management and ongoing oversight.
Planning for the Future
How can estate planning affect my heirs?
Effective estate planning can help reduce tax burdens, ensure efficient asset transfers, and provide structure and guidance for beneficiaries. Trusts and coordinated planning can help protect assets and support long-term family goals.
Some families also choose to involve heirs in planning discussions to promote continuity and responsible wealth management.
How does estate planning fit into retirement planning?
Estate and retirement planning work together. Certain strategies may help manage taxes during retirement while also preserving assets for beneficiaries. It’s important to balance gifting and estate strategies with maintaining your own financial security.
Working with experienced professionals helps ensure your plan supports both your lifestyle and your legacy.
How can I get started or ask additional questions?
Our Wealth Management professionals are available to discuss your goals, explain options, and work with your advisors to develop a plan that fits your needs.