Understanding Trusts and Estates
Planning for the future begins with understanding the difference between a trust and an estate. Both play an important role in protecting your assets, honoring your wishes, and ensuring a smooth transfer of wealth to your loved ones. Whether you’re preparing your own estate plan or managing the affairs of someone else, knowing how these structures work can help you make informed, confident decisions.
Estates
An estate includes everything a person owns and owes at the time of their passing — such as real estate, investments, retirement accounts, personal property, and any remaining debts. Thoughtful estate planning ensures those assets are distributed according to your wishes, helps minimize taxes, and provides peace of mind that your loved ones will be cared for.
Trust
A trust is a legal arrangement that allows a trustee to manage assets for the benefit of others. Trusts are an important tool in protecting wealth, avoiding probate, and maintaining control over how and when your assets are shared with your beneficiaries.
When to Begin Trust and Estates Planning?
Estate and trust planning should begin as soon as you start building significant assets or establishing a family. Key life events — such as marriage, the birth of children, or the acquisition of property — are ideal times to start or revisit your plan.
Ideal Timing
Begin planning in your 30s or 40s, as your wealth and responsibilities grow.
Key Milestones
Review your plan during major life changes, including marriage, children, business formation, or retirement.
Ongoing Review
Regular updates with an estate planning attorney and tax advisor ensure your structure remains compliant, tax-efficient, and aligned with your long-term goals.
Proper planning ensures that your loved ones are protected and your legacy is preserved with minimal tax impact.