Why trust matters
Trusts can manage assets, succession, incapacity, control, and charitable purposes, but legal and tax effects vary greatly.
How it is applied
Planning defines settlor, trustee, beneficiaries, powers, distributions, revocability, jurisdiction, assets, costs, and oversight.
Portfolio example
A trustee manages investments and makes distributions for a child under standards in the trust document.
How to interpret it
The trust document and law govern; the label alone does not describe control or tax.
Limitations and common misconceptions
Poor drafting, unsuitable trustees, unfunded trusts, fees, and cross-border conflicts can defeat objectives.
Sources and further reading
- Estate and Gift TaxesU.S. Internal Revenue Service
- Managing Someone Else’s MoneyU.S. Consumer Financial Protection Bureau