Trusts

A trust is an arrangement whereby money or property is owned and managed by one person (or persons, or organizations) for the benefit of another.  A trust is created by a settlor, also known as the trustor, who entrusts some or all of his property to people of his choice (the trustees). The trustees are the legal owners of the trust property (or trust corpus), but they are obliged to hold the property for the benefit of one or more individuals or organizations (the beneficiary, a.k.a. cestui que use or cestui que trust), usually specified by the settlor. The trustees owe a fiduciary duty to the beneficiaries, who are the "beneficial" owners of the trust property. 

Trusts can be established for various reasons.  First, trusts may be created purely for privacy. The terms of a will are public and the terms of a trust are not. In some families this alone makes use of trusts ideal.  Second, trusts may be used to protect one's self against one's own inability to handle money.  These are called spendthrift trusts.   It is not unusual for an individual to create an inter vivos trust with a corporate trustee who may then disburse funds only for causes articulated in the trust document. These are especially attractive for spendthrifts. In many cases a family member or friend has prevailed upon the spendthrift/settlor to enter into such a relationship. Third, trusts are an integral part of wills and estate planning.  Trusts frequently appear in wills (indeed, technically, the administration of every deceased's estate is a form of trust). A fairly conventional will, even for a comparatively poor person, often leaves assets to the deceased's spouse (if any), and then to the children equally. If the children are under are of majority, (typically 18 or 21 years of age) a trust must come into existence until the contingency age is reached. The executor of the will is usually the trustee, and the children are the beneficiaries. The trustee will have powers to assist the beneficiaries during their minority.  Fourth, in some common law jurisdictions all charities must take the form of trusts. In others, corporations may be charities also, but even there a trust is the most usual form for a charity to take. In most jurisdictions, charities are tightly regulated for the public benefit.  Finally, trusts are an efficient means of tax planning.  The tax consequences of doing anything using a trust are usually different from the tax consequences of achieving the same effect by another route (if, indeed, it would be possible to do so). In many cases the tax consequences of using the trust are better than the alternative, and trusts are therefore frequently used for tax avoidance.

How We Serve Our Clients

Wills and trusts are common ways in which individuals dispose of their estates.  Trusts have the benefit of avoiding probate, a lengthy and costly legal process that oversees the transfer of assets.  If you die intestate (without a will or trust), your real and personal property will be distributed in accordance with the intestate laws of your state.  This distribution many be very different than your desires so it is imperative to execute a will or trust.  The experienced professionals at firm will work with you, as well as your accountant, financial planner, and associated professionals to ensure that your wishes are carried out.