Trusts: What They Are, Why They Matter, and How They Work
When most people think about estate planning, they picture a will. Maybe some paperwork, a few signatures, done. But a trust? That word tends to sound bigger than it is. More complicated. Maybe even intimidating. In reality, a trust is just a tool. A powerful one, yes—but also a flexible one that can solve a lot of problems before they even start.
At Fletcher Estate Planning, we help people use trusts to avoid court battles, protect loved ones, and maintain control long after they’re gone. Here’s what you should know.
What Exactly Is a Trust?
At its core, a trust is a legal setup. One person (called the grantor) puts assets—money, property, investments—into a pot. Another person or institution (the trustee) manages that pot, following specific instructions. Those instructions might say “give my kids a monthly allowance” or “donate everything to a local shelter after I pass.” The people who benefit from the trust are called the beneficiaries.
That’s really it. A set of rules, a person to carry them out, and someone the rules are meant to help.
Who Does What?
- The Grantor starts the whole thing. This is the person creating the trust and deciding what goes into it.
- The Trustee manages everything inside the trust. They follow the rules and have a legal duty to act in the best interest of the beneficiaries.
- The Beneficiaries are the people (or organizations) who receive what the trust provides—either right away or over time.
Different Trusts, Different Goals
Not every trust does the same job. Some are simple. Others are built for very specific situations.
- Revocable Living Trusts give you full control during your life. You can move money in and out, change the rules, even dissolve the whole thing if you want. When you die, your assets pass to your beneficiaries without going through probate court.
- Irrevocable Trusts are more permanent. Once it’s set up, the terms can’t be changed. That sounds harsh, but it’s what gives this kind of trust its strength. It can protect your assets from creditors and lower your taxable estate.
- Testamentary Trusts don’t kick in until after death. These are created inside your will and often used to delay an inheritance or set limits around how it can be used.
- Special Needs Trusts help individuals with disabilities keep access to public benefits while still receiving financial help from the trust.
- Charitable Trusts allow you to support causes you care about while gaining some potential tax advantages along the way.
Why People Choose Trusts
- To avoid probate. Courts can move slowly. A trust allows assets to transfer quickly and privately.
- To keep things organized. If you’ve got children, multiple properties, or complicated finances, a trust lets you spell out exactly what should happen and when.
- To protect wealth. Some trusts shield assets from lawsuits or creditors. Others help reduce estate taxes.
- To take care of vulnerable people. A trust can make sure your minor children, a spouse, or a loved one with a disability receives support in a structured, safe way.
Mistakes to Avoid
Many people create a trust but never move anything into it. That’s like building a safe and forgetting to put your valuables inside. For a trust to work, it has to be funded. That means retitling accounts, transferring deeds, and assigning beneficiary designations in a way that matches the plan.
Another common error is failing to update the trust as life changes. Marriage, divorce, a new baby, a falling out—these things affect your plan whether you account for them or not.
Final Thought
A trust isn’t just a legal document. It’s a plan in motion. One that can protect everything you’ve worked for and make sure it lands exactly where you want it to.
If you’re considering a trust—or not sure if you need one—Fletcher Estate Planning is here to help. We break it down clearly and work with you to build something that makes sense for your life, your family, and your future.
