This month, Elder Law Attorney Arthur Bergeron will discuss revocable and irrevocable trusts and testamentary trusts, and what happens with each after you pass away, including alternatives that you might consider before you pass away….(read more)

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Arthur Bergeron Lecture: Trusts: What Are They? Do You Need One? How Do They Work?

Trusts have been around for centuries, yet many people still have a limited understanding of what they are, how they work, and whether or not they need one. To shed light on this complex topic, Arthur Bergeron recently delivered a fascinating lecture on trusts, exploring their intricacies and offering valuable insights into their benefits and potential drawbacks.

So, what exactly is a trust? In essence, a trust is a legal entity that holds assets for the benefit of another person or group of people, known as beneficiaries. It involves three key parties: the settlor, who creates the trust and transfers assets into it; the trustee, who manages these assets in accordance with the trust’s terms; and the beneficiaries, who receive the benefits from the trust.

During his lecture, Bergeron emphasized that, contrary to popular belief, trusts are not exclusively for the wealthy. Many individuals can benefit from establishing a trust, as it offers a range of advantages. For example, trusts can be an effective means of avoiding or minimizing probate, the often lengthy and expensive legal process of distributing assets after someone passes away. By placing assets in a trust, they can be distributed swiftly and privately, with minimal involvement from the courts.

Additionally, trusts can provide valuable protection for beneficiaries. For instance, those with special needs or limited financial responsibility can benefit from a trust that provides them with a regular income without jeopardizing their eligibility for government assistance. Likewise, a trust can safeguard assets from potential creditors or ex-spouses during a divorce settlement, ensuring that the intended beneficiaries are the sole recipients.

Understanding the different types of trusts is essential when considering whether or not one is necessary. Bergeron discussed revocable and irrevocable trusts during his lecture, explaining that the former allows the settlor to amend or revoke the trust while still alive, whereas the latter cannot be altered once established. Each type comes with its own set of advantages and considerations, depending on the individual’s circumstances and goals.

Furthermore, Bergeron highlighted the importance of choosing the right trustee. A trustee should be reliable, knowledgeable, and capable of managing the trust’s assets in accordance with the settlor’s instructions. Many people opt to designate a professional trustee, such as a financial institution or an attorney, to ensure that the trust is administered properly and impartially.

Finally, Bergeron discussed the necessary steps involved in setting up a trust. While the process may seem daunting, it is essential to consult with an experienced estate planning attorney to ensure that all legal requirements and guidelines are met. From creating the trust document and selecting a trustee to transferring assets into the trust, professional guidance is invaluable to establish a trust that aligns with the settlor’s goals and protects the interests of the beneficiaries.

In conclusion, Arthur Bergeron’s lecture on trusts provided a comprehensive overview of this complex topic. Trusts are not a one-size-fits-all solution, and their efficacy depends on an individual’s unique circumstances. By understanding what trusts are, their potential benefits, and the steps involved in creating and managing them, individuals can make informed decisions about whether a trust is necessary and how to proceed. With proper guidance, trusts can be a powerful tool to protect assets, support loved ones, and ensure a smooth transfer of wealth.