A trust is a private contract between you (Grantor) and a person you name (Trustee) to manage your affairs. This can be for you or for the benefit of your loved ones (Beneficiary). Some of the things a trust can help accomplish include:

• Keeping your matters private
• Avoiding probate
• Keeping family members from objecting to your estate plan
• Providing for loved ones
• Minimizing estate taxes
• Managing your financial affairs

There are many types of trusts designed for different purposes.

Common classifications include

  a. Living vs. testamentary trusts

  b. Revocable vs. irrevocable trusts

  c. Trusts that are classified according to purpose

This approach is often used to provide for someone who is unable to manage his or her own affairs. For example, sometimes families will establish a trust to provide for an adult with a severe disability or an elderly person with Alzheimer’s, etc.

Another form is a charitable trust, where assets are designated for the benefit of a charitable organization or church.

To manage the trust according to its stated guidelines and in the best interest of the beneficiary.

A person or an organization can serve as the trustee. It is also possible to have an alternate trustee named should the first trustee become incapacitated or resign.

More than one trustee is allowed, however some arrangement must be in place for decision making. In the absence of a trustee (e.g., deceased or unavailable) then the Probate Court may appoint someone to serve in that capacity.

Clearly, you should select a person or organization that you can trust. If possible, conduct a background check on anyone you are considering. At Guardian Finance and Advocacy Services we administer numerous trusts.

This can vary. Most well drawn trusts will have a section that deals with fees.

You may request, within the trust document, that the Trustee provide a regular accounting of your trust funds.

The Grantor defines the time line of the trust and this is included in the document.

Trusts can be revocable, meaning that the Grantor may decide that he/she no longer requires the services of the Trustee.

Alternatives include Power of Attorney and Conservator.