Simply put, a trust is a legal relationship in which the trustee, who can be you or someone you name, holds legal title to assets and manages them on behalf of the beneficiaries of the trust. Those beneficiaries could include you, your family or your favorite charities. The assets inside the trust could include your home, investment accounts, and more. You can set up the trust so you always have access to the assets at any time. For example, you could sell investments held in the trust to pay college tuition for a child.
Trusts can offer a number of benefits:
· Maintains the integrity of your estate
· May minimize transfer/estate taxes
· Helps your beneficiaries avoid the expense, delay, and publicity of probate
· Allows you to create rules for how your assets will be distributed
· Allows for charitable giving strategies
· Enables sound financial decision-making should you become incapacitated
· Allows for detailed planning in unique family situations, such as ongoing care for a special needs child
A common approach we see is an individual setting up a trust and acting as the trustee, with the intent to do so until their death. This gives them the latitude to hand over trustee responsibilities to someone else should they be unable to continue due to age or illness.
A trust can serve as an integral part of your overall financial plan. It offers tremendous flexibility in establishing stability and security for your family now and into the future.
Don Daigle is a Financial Consultant at Charles Schwab in Vineland-Millville with over 30 years of experience helping clients achieve their financial goals.
Information presented is for general informational purposes only and is not intended as personalized advice. Employees of Charles Schwab & Co., Inc. are not estate planning attorneys and cannot offer tax or legal advice, or create and prepare legal documents associated with such plans. Where such advice is necessary or appropriate, please consult a qualified legal or tax advisor.
Don Daigle
Branch Leader
2184 North 2nd Street
Millville, NJ 08332
856-506-3412
Get Started at schwab.com/vineland-millville
