What Is a Trust and Why Should I Care?
A trust is a plan for what happens to your things, your assets, and the people you love most — written down and legally binding on the people who carry it out. With one in place, you decide who cares for your minor children, how your assets are managed and distributed, and who is responsible for following your wishes.
What does an estate plan do?
A good trust is simply a plan. If you were around, you would make those decisions each day. If you are gone, who will make the decisions about whether to sell a home, make an investment, or choose your child’s school?
A trust describes those decisions in detail and binds them legally to happen.
When you have an estate plan, you decide who will take care of your minor children, how your assets will be managed and distributed, and who will be responsible for ensuring your wishes are followed in the event of your incapacitation or death.
An effective estate plan also avoids the cost and hassle of court supervision over the administration and distribution of your assets.
What documents are included in an estate plan?
A trust-based estate plan includes:
- a living trust,
- a will,
- a general power of attorney,
- a medical power of attorney, and
- a medical directive.
A will-based plan includes:
- a will,
- a general power of attorney,
- a medical power of attorney, and
- a medical directive.
Not sure which is right for you? Our will vs. trust guide walks through the decision in plain language.
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