Should I consider setting up a trust?

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Trusts can provide potential benefits, like control, incapacity protection, potential probate avoidance and tax planning opportunities. A trust could be a useful tool to incorporate in your estate strategy. But there are numerous types of trusts – and reasons each type could make sense for you – depending on your financial and personal situation.

That's why we believe that answering this question requires a team approach. Your financial advisor can help you start this process by working to identify and prioritize your goals and then coordinating your team of tax and legal professionals.

Living trusts

The most common type of trust is called a revocable living trust.

A living trust:

  • Lets you keep control of your assets while you are alive.
  • Allows you to name a person (or entity) to manage or distribute your assets as directed in your trust if you die or become unable to take care of this on your own.

Assets must be titled in the name of the trust to be considered part of it.

Potential benefits of a trust

  • Allows for someone to continue to manage your assets (like property and investments) if you become incapacitated
  • Sets the rules about how your assets are distributed upon your death 
  • Avoids probate

Considerations

  • Must title assets in the name of the trust 
  • Upfront costs (attorney fees, etc.)

Creating a trust involves upfront costs, but it can help avoid expenses and hassles later. For example, because the trust owns assets rather than your owning them as an individual, you may be able to avoid probate.

How we can help

Your attorney can help you determine if the benefits outweigh the costs of a trust and if this strategy makes sense for your situation. Talk with your Edward Jones financial advisor today to get started planning for your future.

Important Information:

Edward Jones, its employees and financial advisors are not estate planners and cannot provide tax or legal advice. You should consult your estate-planning attorney or qualified tax advisor regarding your situation.