A trust can be a powerful estate planning tool for a Connecticut resident. It can protect assets from creditors as well as minimize estate taxes owed. However, it is important that the right person is chosen to oversee that trust. In many cases, a spouse is not going to be the ideal choice to act as a trustee. This could be especially true for those who are in a blended family.
A child may not be the best choice to be a trustee either. This is because he or she might not have the skills to manage assets or have any interest in doing so. Furthermore, an adult child might not understand the liability issues that he or she could encounter while managing a trust. With all the issues that can arise from a child or spouse running a trust, it is often best to have the role of trustee filled by a professional.
In many cases, an individual or family will retain some level of input as to how the trustee operates. At the same time, a professional trustee is likely to understand how to manage a trust in a way that represents the interests of all beneficiaries. By doing so, a professional could prevent relationships among family members from being strained or broken.
There are many ways in which trusts can be helpful to a person or family. As trust assets are held outside of an estate, they are not considered marital property in a divorce. That can be ideal for parents who want to protect a child’s inheritance. An attorney may be able to help a client create a trust or learn more about how it could fit into an estate plan.