Trusts Attorney in Henderson, Nevada
What is a Trust and how can different kinds of trusts help with estate planning?
What is a Trust and how can different kinds of trusts help with estate planning?
More In This Category
View Transcript
i would consider a trust as
really the primary estate planning tool
that we use in estate planning today
you know i think traditionally a will
was kind of the
the most prevalent document for estate
planning but i think a trust has really
kind of jumped past wills and i think
for a lot of reasons but to define what
a trust is it’s really uh an agreement a
legal document that somebody creates
that allows them to
say when they become incapacitated or
when they pass away who’s going to
handle the administration of their
affairs and it allows them to say when
they pass away where are their assets
going to go and how is that going to
take place those are just some general
you know advantages of doing a trust
but a trust has three primary parties
one party is the person who creates it
that’s oftentimes uh referred to as the
trustor or grantor or set lord of a
trust who established it
who put the property into the trust
that’s who that person is and then the
second party is the trustee of that
trust which is you know referred to as
the manager
for the trust meaning the trustee has
the authority to manage the assets to
invest them and ultimately to distribute
those assets to the beneficiaries which
brings in the third party the
beneficiaries of a trust are those who
are entitled to
receive distributions of the trust
assets usually clients who establish a
standard revocable trust they are going
to serve in all three capacities they’re
going to establish the trust
they’re going to be the trustees and
they’re also the beneficiaries because
it’s their property until they
ultimately pass away and so every good
estate plan should at least have
a traditional
revocable trust and sometimes that’s
referred to as a family trust or a
living trust but it’s a central document
to any good estate plan there are many
different types of trusts but they
usually fall into one of two categories
one
is a revocable trust and two is an
irrevocable trust a revocable trust is
the trust that a client can amend and
change and modify whenever they want to
there’s no restrictions and that
normally is used for
you know addressing what happens if they
if they become incapacitated what’s
going to happen when they die where the
assets going to go who’s going to be in
charge of handling that administration
and so that’s central to any good estate
plan
a lot of clients can benefit from having
an irrevocable trust those trusts are a
little bit more involved and there’s
many different types of irrevocable
trusts but an irrevocable trust is a
trust that really can’t be revoked or
amended or changed
at least as easily as a revocable trust
and so it’s usually more permanent
and there’s many reasons why someone
might want to establish an irrevocable
trust and i would say just generally
speaking
some of those reasons are to protect
their assets from creditors
to make gifts to
you know their kids or or loved ones and
then another reason why someone might
establish new revocable trust is you
know to minimize estate taxes and so a
lot of times people that that really can
benefit from an irrevocable trust or
people that have you know just those
types of of issues
and they
you know tend to kind of have more
wealth and they want to try and do some
planning to protect that wealth or to
gift it away or to kind of save taxes on
it
Las Vegas, NV estate planning attorney Taylor K. Morris explains what a Trust is and how can different kinds of trusts help with estate planning. He views a trust as the cornerstone of modern estate planning. While wills were traditionally the most common estate planning tool, trusts have increasingly taken precedence for a variety of reasons. At its core, a trust is a legal document that allows an individual to outline how their affairs should be managed if they become incapacitated and how their assets are to be distributed after they pass away.
A trust involves three primary parties. First is the trustor, also called the grantor or settlor—the person who creates the trust and transfers property into it. Second is the trustee, who acts as the manager of the trust, responsible for handling and investing the assets and ultimately distributing them according to the trust’s terms. The third party is the beneficiaries, who are entitled to receive the trust’s assets. In a typical revocable trust, the client often serves in all three roles: they create the trust, act as trustee while alive, and remain the primary beneficiary until their death.
He emphasizes that every solid estate plan should include at least a traditional revocable trust—sometimes called a family or living trust. This trust allows clients to amend or modify its terms at any time and is particularly useful for managing incapacitation, asset distribution, and administration after death.
For clients with more complex needs, irrevocable trusts can be highly beneficial. Unlike revocable trusts, these are generally permanent and cannot be easily amended or revoked. They serve multiple purposes, such as protecting assets from creditors, making gifts to children or loved ones, and minimizing estate taxes. Irrevocable trusts are typically suited for clients with substantial assets who want to safeguard their wealth, efficiently transfer it, or reduce tax liability.
In his practice, trusts—both revocable and irrevocable—form the central framework around which an effective estate plan is built, offering clients control, flexibility, and protection for their assets and legacy.
