What is a trust and why would I need one?
Essentially, a trust is an agreement whereby a third party (also known as a trustee) agrees to hold property for the good of one or more beneficiaries. Property can be just about anything—a savings account, real estate, a stock portfolio, business interest, or an art collection. The trustee has a fiduciary obligation to manage the trust property in the best interest of the beneficiary pursuant to the terms outlined by the agreement. Often, you are both the trustee and the beneficiary of your trust while you’re living and competent. It’s not until you are no longer able to function as trustee that a third party will step in and assume the role of trustee.
There are various reasons why someone would need a trust. Maybe you are apprehensive about leaving property to your heirs unassisted. Or perhaps, you would like to ensure continuity of asset management if you should become incapacitated.
To learn more about trusts and what they can do for you and your family, please listen to my guest appearance on the WGVU Morning Show with Shelley Irwin.