Trusts
Trusts covers how trusts are structured, funded and changed over time. The topic includes revocable and irrevocable trusts, grantor trusts, dynasty trusts, distribution terms, funding and the ways a trust can be modified.
What the topic covers
The guides describe how trusts receive property and business interests, how trust control changes during incapacity, and how distribution rules shape beneficiary access. They cover dynasty trusts that hold assets across generations, grantor trusts and the way they separate income tax from estate tax treatment, trusts that provide for a spouse and later heirs, and how irrevocable trusts can change.
Questions owners ask
How the pieces connect
A trust works only for property that has been transferred into it, so funding links the trust document to the actual assets. The type of trust decides who controls the property, who is taxed on its income and whether the terms can change. The infographic for this topic sets the main trust types side by side.
Who meets this topic
Owners of businesses, real estate and private investments meet trust questions when they hold assets that must pass to several people over time. Spouses and adult children meet them as grantors, trustees and beneficiaries.
- How a trust's state connections affect its administration
Learn how state connections affect trust governing law, administration, transfer procedures, court jurisdiction and taxes, with examples from several states.
- How dynasty trusts hold assets across generations
See how dynasty trusts hold family business interests, how Delaware treats trust property, and which funding, tax and trustee questions deserve closer review.
- How grantor trusts separate income and estate tax treatment
Understand grantor trust income taxes, completed gifts, sales, reimbursement, retained powers and basis, with primary sources and questions for your advisers.
- How irrevocable trusts can change
Learn how an irrevocable trust may change through consent, court action or decanting, with state examples, notice requirements and important tax considerations.
- How revocable living trusts work and what they do not do
A revocable living trust can avoid probate for property transferred to it. See what funding changes, what trustees manage and why estate taxes remain separate.
- How trust control changes during incapacity
Review trust control during incapacity, successor acceptance, cotrustee decisions and agent authority, with state examples and records to discuss with counsel.
- How trust distribution rules shape beneficiary access
Understand required and discretionary payments, beneficiary control, HEMS limits and state law differences before discussing distribution terms with counsel.
- How trusts provide for a spouse and later heirs
Explore trusts for spouses and later heirs, with QTIP income and elections, SLAT tax questions, basis rules, disclaimers and blended family planning resources.
- How trusts receive property and business interests
Learn how trusts receive real estate and business interests, with state transfer rules, S corporation limits, retirement distinctions and records to gather.
- Can a trust beneficiary also serve as trustee?
West Virginia states that a trust is not invalid or terminated, and title does not merge, merely because the trustees are the same people as the beneficiaries.
- Can one spouse amend or revoke a joint trust?
In Missouri and West Virginia, either spouse acting alone may revoke a trust holding community property, but amendment requires both spouses to act jointly.
- Do beneficiaries have to know about a trust?
A trust instrument can set what information beneficiaries receive and when, while state rules and the trust's terms affect how long disclosure can be delayed.
- Does a living trust eliminate administration after death?
Some trusts remain open for extended periods, so distribution does not necessarily end administration promptly. The probate effect concerns trust property.
- Does a pour-over will pass assets through probate?
State statutes allow a will to devise property to the trustee of a trust that the will identifies. Alaska, Oregon and Connecticut each have such a provision.
- How does an equivalent-value trust swap work?
For owners whose trusts hold business, real estate or investment assets, the mechanics turn on equivalent value and limits on shifting beneficiary interests.
- Is property in a revocable trust part of the taxable estate?
Practitioners describe the use of a trust as leaving the size of the taxable estate and the estate tax burden unchanged. Revocable trusts have nontax purposes.
- What does a certification of trust disclose?
For an owner using a trust in a business or property transaction, it can provide information about the trust's existence, identity, and trustee powers.
- Ascertainable standard
Colorado law uses those subjects to define the standard. An ascertainable standard defines the purposes for which a trustee may distribute trust assets.
- Irrevocable trust
An irrevocable trust can give beneficiaries access under its terms. Irrevocable trusts can hold assets for beneficiaries or manage property across generations.
- Power of appointment
Arizona law characterizes a trustee's exercise of a power to appoint trust property under the relevant subsection as exercising a special power of appointment.
- Revocable trust
A revocable trust is a trust that its settlor can revoke. The trust controls property it owns, so transferring property into it is part of the arrangement.
- Spendthrift provision
The term appears in state trust laws, though the stated requirements differ. Missouri recognizes a provision that restrains either kind of transfer, or both.
- Trust decanting
Changing the terms is a separate matter from changing who the beneficiaries are, and practitioners note that decanting generally cannot add beneficiaries.
- Trust funding
A revocable living trust controls assets it owns, and trustee authority covers property transferred to it. Accounts may be transferred or property retitled.
- Trust protector
The scope depends on the trust's terms and state law. A trust protector and a trustee are distinct roles when the trust assigns them different authorities.
