Protection. Stability. Flexibility.
While it may sound complicated, a trust is simply an entity that allows a trustee to manage and distribute assets on behalf of the creator. The various uses of trusts are frequently misunderstood — they can play an important role in estate planning for clients of all types. Here are some of the benefits trusts can provide:
The distribution of assets from an estate can create issues — for example, if one of the heirs has a history of financial mismanagement, receiving a large sum of money all at once might put them at risk. A trust could require those payments to be spread out.
Ensuring care for a spouse
People often use trusts to ensure their spouse is cared for as a widow or widower, particularly if they are elderly or unable to care for themselves. Trustees can pay household bills and taxes, find and manage care providers, monitor assets and more.
Ensuring personal care
Sometimes living trusts are created when a person wants or needs assistance with their own care, household management, etc.
Trusts can require assets to be held until a specific time or designated for a specific purpose (such as money to be used for college). Trusts also can protect assets from claims by estranged spouses, ex-spouses or other parties, including debt collectors.
Trustees can be instructed not to provide assets to beneficiaries until certain conditions have been met, such as completion of education or health goals.
Reducing tax liability
Depending on the characteristics of the trust and the types of assets contained within it, a trust can lower the amount of federal and state taxes owed by an estate.
Once a trust is established and Fred Schoen Fiduciary Services is named as trustee, we offer the following services:
- Trust administration, including a comprehensive review of documents
- Management of all trust assets
- Consultation with beneficiaries to assist with lifestyle maintenance, trust adherence and any special needs
- Trust accounting, including tax review and reporting
- Record keeping
Fred Schoen has served as the named trustee for thousands of trusts in his career, and our team is dedicated to continuing that legacy of service. We can help determine if a trust is right for your situation, and then work under the direction of a qualified attorney to design one that meets your specific needs.