Trusts are legal arrangements that provide for the transfer of assets from their owner, called the grantor or trustor, to a trustee. They set the terms for the trustee’s management of the assets, for distributions to one or more designated beneficiaries, and for the ultimate disposition of the assets.

In addition, trusts can be created to serve a variety of purposes, both before and after the death of the grantor.  During their lifetimes, grantors can create revocable trusts which they can alter, amend, or terminate at any time. A grantor of a revocable trust can serve as its trustee. The grantor effectively continues as the owner of the trust assets for tax purposes. The trust document can provide for a successor trustee, for example, upon a grantor-trustee’s death or disability, and include instructions for the subsequent management and transfer of the trust assets. 

Persons concerned about the financial needs of individuals with disabilities (i.e., “special needs” that prevent or limit their ability to provide their economic support), can create “special needs trusts.” 

Estate planning often is viewed as a concern for older individuals with substantial means, it is a subject that almost everyone needs to address. Even if your assets are limited to a residence, bank accounts, and perhaps an IRA or 401(k) account, you want to be sure that the people you wish to receive them do indeed become their owners and that your plans are executed with the greatest efficiency and least expense possible.

In approaching estate planning, wills and trusts are generally not an either/or question. For small estates with easily transferred assets and simple bequests, a will may be the least expensive and most efficient choice.  However, a trust without a will can present problems concerning assets outside the trust that become subject to intestacy laws. Larger and more complex estates may benefit by using both arrangements.

If you are part of an LGBTQ+ legally married couple, then estate planning will essentially be the same for you for married straight couples. However, estate planning for unmarried couples, LGBTQ+ or straight, is essential, especially for long-term partners. If you are in a partnership but not legally married and die intestate (without a will), your partner could find themselves fighting with family or others over the departed's assets. LGBTQ+ couples could face potential discrimination from outside family members, and without a will, state laws may favor blood relatives over partners.

Whether a trust or will is better for an individual will depend on the family and financial circumstances. In general, wills are less expensive to write and easier to implement, although they can be contested in probate court. Wealthy individuals seeking to avoid probate and minimize estate tax exposure could be better off with an irrevocable trust. An irrevocable trust essentially transfers assets out of one's name, but these are more expensive to draw up and implement, require naming a trustee, and cannot be changed once in effect.