01 Mar 2024
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Who should have a trust?

In today’s world, people increasingly view privacy as a luxury. From intrusive data collection practices to public exposure through social media, the concept of personal privacy is under constant attack. However, amidst the struggle, the ancient practice of creating legal trusts continues to stand out as a powerful tool that offers protection regardless of one’s financial status. Debunking the myth that trusts are exclusive to only the wealthy elite, trusts serve individuals across all societal segments.

What exactly is a trust?

At it’s most basic level, a trust is a legal arrangement that involves one party (the trustee) holding assets for another’s benefit (the beneficiary). Although many associate trusts with managing and transferring wealth, they also encompass asset and privacy protection. Anyone looking to preserve privacy and secure assets can establish a trust. From business owners protecting trade secrets to parents ensuring their financial future, trusts adapt to various needs, and offer tailored privacy solutions.

Types of trusts

Trusts play a crucial role in estate planning by allowing individuals to dictate how their assets are managed and distributed after their passing. By establishing trusts, individuals can avoid the public, costly probate process where potentially sensitive financial and personal details are exposed to the public domain. Trusts, on the other hand, enable a seamless transfer of assets, beneficiary privacy, and minimize the risk of disputes.

Different trust structures address specific privacy concerns. For example:

  1. Discretionary trusts: allow trustees to decide asset distribution, protecting beneficiaries’ identities and finances.
  2. Revocable trusts: enable asset control during one’s lifetime and private wealth transition posthumously.

The idea that only the wealthy benefit from trusts deters many from utilizing them. However, they provide a confidential way to manage assets, offering individuals a defense against an increasingly and unavoidably transparent world.

As always, the above is not intended to serve as legal advice or to form or imply the existence of an attorney-client relationship. Rather, the above is for informational purposes only. If you believe that you might benefit from a trust or a review of your estate plan, please contact our office today to schedule a complimentary consultation.