A trust is a powerful estate planning tool that protects your assets and avoids the probate process. Learn about different trusts and how they can protect your legacy. EP Wealth financial advisors are available nationwide.
Do you need a trust?
A will is an essential estate planning tool, but it may not resolve all issues that arise after your passing. To cover those gaps, you might want to consider adding a trust.
A trust is a means of managing your assets during your lifetime and distributing them to your beneficiaries in the future.
Learn more about trusts and their role in a comprehensive estate plan designed to protect your assets today, tomorrow and for years to come.
What Is a Trust?
A trust is a legal contract that provides instructions on distributing your assets before death, after death or if you become incapacitated. It is a separate and distinct entity with its own rights, almost like a person or business. With a trust, the trustor or grantor gives the trustee the right to hold and manage assets or property on behalf of a third party, the beneficiary.
Benefits of Trusts for Estate Planning
The primary goal of a trust is to protect assets and transfer them to the proper parties after the asset owner’s death.
There are many reasons to consider adding them to your estate plan:
- Trusts protect assets from creditors and individuals and entities that may use them against the grantor’s wishes.
- Trusts allow assets to be used for specific purposes, like helping beneficiaries start businesses or fund their education.
- Trusts provide some level of privacy, compared to wills, which may be published as public records in some jurisdictions.
- Trusts may offer certain tax advantages over other estate planning tools, depending on the type of trust.
- Trusts allow beneficiaries to avoid the probate process, which can be costly and time-consuming.
You can choose a family member or friend to act as your estate trustee. EP Wealth Private Trust™ is another option to help simplify the trust process, relieving undue stress on your loved ones.
As part of EP Wealth Advisors estate planning services, we also offer corporate trust services through EP Wealth Private Trust™. EP Wealth Private Trust™ is a corporate trustee that manages the distribution of your assets as stipulated in your trust. It's just one of our many services to make estate planning as efficient and productive as possible.
Different Types of Trusts
Trusts are available to achieve different goals, and every trust fits into one or more of these categories:
- Living: This trust is created while the grantor is alive, allowing you to transfer ownership of assets to a trust account to be distributed when you choose.
- Testamentary: This trust is established after death and included in the grantor’s last will and testament. It controls asset distribution to beneficiaries according to the grantor’s wishes.
- Revocable: The grantor can change or cancel a revocable trust. The grantor retains control over their assets.
- Irrevocable: Once created, the terms of an irrevocable trust cannot be changed. The grantor effectively gives up control of their assets.
- Funded: The grantor can place assets in a funded trust during their lifetime.
- Unfunded: An unfunded trust consists of the trust agreement itself. It only becomes funded upon the grantor’s passing and can also remain unfunded.
As you can see, trusts are versatile and complex. EP Wealth advisors take the time to understand your future goals and build a personalized estate plan to meet your needs. From wills and powers of attorney to trusts and charitable giving, we work to protect your legacy and make your wishes a reality. Contact an EP Wealth advisor in your area to get started.
DISCLOSURES:
- Private Trustee services are delivered exclusively by National Trust Company doing business as EP Wealth Private Trust ("NAT"). Each EP Wealth Advisors client that elects to engage NAT for these services must enter into a separate servicing agreement with NAT that specifies services that will be delivered and the fees that will be charged by NAT. EP Wealth Advisors is not a Trust Company, is not in the business of serving as a trustee or providing trustee services.
- EP Wealth Advisors LLC is a Trust Representative Office of National Advisors Trust Company* (national charter) and National Advisors Trust of South Dakota, Inc.* doing business as EP Wealth Private Trust (state charter)
- National Advisor Trust (“NAT”), and any of its subsidiary businesses including any of its DBAs, is an independent entity and in no way under common ownership, control or otherwise affiliated with EP Wealth Advisors, LLC (“EPWA”). All services described herein will be exclusively furnished by NAT Doing Business As (“DBA”) EP Wealth Private Trust. Clients of EPWA will be referred to NAT DBA EP Wealth Private Trust if it is believed that the Trust Services offered by this entity can be of value to clients of EPWA. These clients will meet with NAT DBA EP Wealth Private Trust and would be presented with their service agreement. Clients of EPWA would independently review NAT’s Service Agreement and determine if they would like to engage them for their Trustee Services. EPWA is not a Trust Company and is not in the business of delivering Trustee Services to any of its clients. Clients of EPWA that elect to hire NAT will do so using their individual discretion and assuming all risks of that decision. EPWA makes no representations, guarantees or warranties to the suitability, performance, or satisfaction with the services offered by NAT.
- EP Wealth Advisors, LLC. is registered as an investment advisor with the SEC and only transacts business in states where it is properly registered, or is excluded or exempted from registration requirements. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the advisor has attained a particular level of skill or ability
- Request an appointment with an EP Wealth Advisor when you have a minimum of $500,000 in investable assets – which includes qualified retirement plans (IRA, Roth IRA, 401(k), taxable brokerage, cash (savings/checking) and CDs. Investable assets do not include your home, vehicles, or collectibles.
- Hiring a qualified advisor and/or financial planner does not guarantee investment success, and does not ensure that a client or prospective client will experience a higher level of performance or results. No guaranty or warranty is made that any direct or implied results or projections being represented here will be met or sustained.
- The need for a financial advisor or financial planner and/or the type of services required are specific to the uniqueness of each individual’s circumstances. There is no guarantee or warrantee that the services offered by EP Wealth Advisors, LLC will satisfy your specific financial services requirements. Services offered by other advisors may align more to your specific needs.
- The information presented is general in nature and should not be viewed as a comprehensive analysis of the topics discussed. It is intended to serve as a tool containing general information that should assist you in the development of subsequent discussions. Content does not involve the rendering of personalized investment advice nor is it intended to supplement professional individualized advice.
- An estate plan is a helpful tool that can assist individuals in managing and arranging affairs in the event of death or incapacity. However, the scope and extent of the plan varies depending on the unique circumstances and desires of the individual client. It is for this reason, that the analysis encompassed herein is not intended to be comprehensive in nature nor should it be interpreted as legal advice. Please consult a legal professional to determine the extent, scope, and the drafting and creation of the appropriate estate documents. EP Wealth Advisors is not in the business of providing legal advice or preparing legal documents. Our review is limited to and in association with Financial Planning only.
- Laws vary by state. The information presented herein is intended to be general in nature and may not apply to your state of domicile. Please consult local legal counsel to determine the best practices for your state.