When most people think about estate planning, they picture writing a will or deciding who gets what. But there’s another tool that can bring more control, flexibility, and peace of mind to the process: a trust.
A trust in estate planning is a legal tool that allows you to outline how your assets should be handled and shared, both while you’re living and after you pass away. Although many assume trusts are only useful for high-net-worth individuals, they can be a smart choice for people in various financial situations and life stages.
Why Estate Planning Matters for Every Family
Over a third of U.S. adults (35%) say they or someone they know has experienced family conflict due to poor estate planning, or none at all. For families who’ve built significant wealth, protecting it across generations is just as important as deciding who inherits what. Without a clear estate plan, even well-meaning families can face unnecessary stress and conflict. That’s a major reason to plan ahead. Even a few clear decisions can help avoid confusion, stress, and disagreement later on.
The numbers show a big gap in who’s preparing. About 77% of households with over $1 million in net worth have an estate plan, will, or trust. But among households with less than $1 million in net worth, only 36% do. That doesn’t mean people with less wealth don’t need a plan—it just means more people could benefit from taking the next step.
Whether you’re early in your retirement planning journey or thinking about how to pass on your values and assets to your family, having a clear plan can support both your peace of mind and your family’s future.
What Is a Trust?
A trust is a legal setup involving three main roles: the grantor, who establishes the trust and transfers assets into it; the trustee, who is responsible for managing those assets according to the terms of the trust; and the beneficiaries, who are the individuals or groups designated to receive the assets or benefits from the trust.
You can set up a trust during your lifetime (a living trust), or you can arrange for it to go into effect upon your death (a testamentary trust). You also have options between revocable trusts, which can be changed or canceled, and irrevocable trusts, which are more permanent.
Each type of trust serves a different purpose, but all provide a way to pass along your assets with more control.
Potential Benefits of Using a Trust
While a will outlines your wishes, a trust in estate planning can do much more. Here are some of the reasons people choose to include a trust in their plan:
- Avoiding probate: Probate is the legal process of validating a will. It can be slow, costly, and public. Assets held in a trust typically skip this process.
- More privacy: Since a trust doesn’t go through probate, your financial details remain private.
- Flexibility: You can outline when and how assets are distributed—whether that’s at a certain age, in stages, or tied to milestones like graduation or buying a home.
- Protecting loved ones: Trusts can help protect children, dependents with special needs, or other vulnerable individuals by controlling how funds are used.
- Strategic tax planning: Certain trusts help minimize estate taxes, manage charitable giving, or support multi-generational wealth transfer
- Ongoing support: You can appoint a professional trustee to help manage assets after you’re gone, giving your family added support during a hard time.
Why Affluent Families Choose Trusts
If you’ve built a portfolio of investments, own multiple properties, or want to pass wealth to the next generation with intention, a trust helps ensure your assets are handled exactly as you envision. It’s especially useful if you want to:
- Reduce the burden on your family
- Avoid probate court
- Keep your affairs private
- Create guidelines around how your money is used
If you’re starting retirement planning early, a trust can also support long-term goals by organizing your finances now and outlining what happens later. It also opens the door to discussions about inherited wealth and helping adult children prepare to receive and manage future assets responsibly.
Prepare Now for a More Confident Future
Estate planning is all about putting your values into action, preventing stress for your family, and setting your financial story up to last. A trust gives you the flexibility to do just that.
At TandemGrowth Financial Advisors, we believe your estate plan should reflect the life you’ve worked hard to build. Whether you’re starting fresh or updating an existing plan, we’ll coordinate with you and your estate planning attorney to help you make thoughtful decisions that protect your wealth and your family’s future.
Let’s talk about whether a trust might be right for you and how it fits into your full financial picture. Contact us today.
About the Author: Jeff Bernier
