SmartAsset
By Rebecca Lake
August 1st, 2025
Trusts let you control how and when your assets are passed on. The stipulations you outline in the trust can help your beneficiaries use it wisely.
Having an estate plan in place can offer reassurance that your assets will be managed according to your wishes, both during your lifetime and after you pass away. Wills are the centerpiece of many estate plans, but they can be contested and may go through a lengthy probate process. Instead, many people will use a trust to transfer assets to their loved ones.
A trust has benefits for creators and beneficiaries alike. You may consider a trust if you want to:
- Pass on assets without going through probate (which is necessary for wills)
- Create a plan for managing personal or business assets if you become incapacitated
- Set aside assets to care for a dependent with a disability
- Establish rules or requirements that beneficiaries must meet to receive their inheritance
- Preserve assets for the care of minor children if you pass away
- Potentially reduce estate and gift taxes
A well-crafted estate plan will protect the interests of both you and your beneficiaries. While a will is an essential part of the estate-planning process, a trust can ensure that your assets go to your loved ones without going through probate. However, before creating a trust, consider the different types available. This decision will be vital to how well your estate plan holds up.
There are many types of trusts, each corresponding to a different goal or financial situation.
A trust can be a critical part of any estate plan, especially if you have small children. They’re also helpful if you have older children who are ‘not capable of handling and managing the assets’ contained in the trust.
Paul T. Joseph, Joseph & Joseph Tax & Payroll, Michigan
