An Introduction to Trusts

You may think trusts are only for wealthy people, but that's not necessarily the case. A properly constructed trust can serve many purposes for families of more modest means. A trust might help avoid the time-consuming and costly probate process, maintain control of a legacy for your heirs, provide for a dependent with special needs, or make a substantial contribution to your favorite charity.


Legal Control of Assets


Although you may be hesitant to give up control of your assets, in some cases it might be worthwhile to choose an independent trustee who would be subject to strict legal requirements in administering the trust.

Testamentary vs. Living Trusts

A testamentary trust becomes effective upon your death and is usually established by your last will and testament. It enables you to control the distribution of your estate (and often is used to name a trustee for assets left to minor children), but it does not avoid probate. You can change or revoke a testamentary trust during your lifetime.



Special-Purpose Trusts

Trusts, whether testamentary or living, can be established for a variety of specific purposes. Here are three of the most common.


Supplemental or special-needs trust — Can help provide for a disabled child and may ensure that the child qualifies for government assistance programs.


There are costs associated with creating and maintaining a trust, and the use of trusts involves a complex web of tax rules and regulations. Consider the counsel of an experienced estate planning professional and your legal and tax advisors before implementing a trust strategy.

FINRA's BrokerCheck Obtain more information about our firm and its financial professionals