Trust Documents
A trust is an estate planning document that creates a structure for holding, managing, and distributing assets according to the instructions provided by the person creating the trust. Trusts are commonly used as part of a comprehensive estate plan to organize assets, identify beneficiaries, and provide instructions regarding how property should be handled during life and after death.
The person creating the trust is commonly known as the settlor, trustor, or grantor. The person responsible for managing the trust is known as the trustee, and the individuals or organizations receiving benefits from the trust are known as beneficiaries.
Trust documents can vary depending on an individual's circumstances, family structure, and estate planning goals.
Common Types of Trust Documents
Revocable Living Trust
Irrevocable Trust
Testamentary Trust
Special Needs Trust
Charitable Trust
A Revocable Living Trust is one of the most common estate planning documents. It is created during an individual's lifetime and may allow the person creating the trust to maintain control over trust assets while providing instructions for management and distribution.
An Irrevocable Trust is a trust structure where certain terms generally cannot be easily changed once established. These trusts are often created for specific planning purposes and typically involve additional considerations.
A Testamentary Trust is created through instructions contained within a will and becomes effective after the death of the person creating the will. These trusts are often designed to manage assets for beneficiaries after an estate is administered.
A Special Needs Trust is designed to hold assets for the benefit of an individual with disabilities while addressing considerations related to ongoing support and resources.
A Charitable Trust is created to provide benefits to charitable organizations or causes according to the instructions established within the trust documents.
What Trust Documents May Include
Trust documents commonly address:
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Identification of trustees and successor trustees
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Beneficiary information
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Instructions for managing trust property
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Distribution instructions
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Trustee powers and responsibilities
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Administrative provisions
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Asset schedules and supporting documents
What a Trust Can Do
Depending on how it is prepared, funded, and administered, a trust may help:
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Organize ownership and management of assets
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Provide instructions for successor trustees
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Establish how assets should be distributed
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Assist with continuity if a trustee becomes unable to serve
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Provide a structured estate plan for beneficiaries
What a Trust Generally Cannot Do
A trust generally does not:
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Automatically control assets that were never transferred into the trust
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Replace all estate planning documents
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Eliminate every possible court process or administrative requirement
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Replace professional legal, tax, or financial guidance when needed
Creating trust documents is only one part of the estate planning process. Proper organization, supporting documents, and ongoing maintenance help ensure that estate planning documents continue to reflect an individual's wishes and circumstances.