I talk about trusts on this website a lot. So what is a trust?
A trust is like a bucket. When I create a trust for a client, I am building their bucket. Then, they put their stuff into the bucket.
Depending on the client’s goals, the bucket might look different. Some buckets have a closed lid and others have an open lid. Some buckets have a faucet and others don’t. When you create a trust bucket, you should talk to your attorney about what type of bucket it is and why you are using that type of bucket instead of another type.
Every trust bucket comes with three jobs.
- the person who owns the stuff that goes into the bucket (the settlor or grantor)
- the person carries and controls the bucket (the trustee) and
- the person who is allowed to have the stuff that is in the bucket (the beneficiary)
Sometimes client’s are allowed to hold all three jobs and sometimes they can only have one job. It all depends on their goals and what they want the trust to accomplish. Again, if you are thinking about creating a trust, please talk to an Elder Law Attorney about your goals and the type of trust that you need.
Here are just a few of the fun things you can do with a trust:
- Protect your money from Medicaid or the nursing home
- Qualify for VA Benefits
- Make sure your stuff goes to who you want when you die
- Protect your loved ones from divorce, law suit, and creditors
- Encourage your heirs to live out your values
- Avoid Probate
- Reduce Administration after death
- Protect Mom and Dad from Predators and Scammers