Understanding wills and trusts

Creating a will, revocable trust or irrevocable trust starts by considering your goals and objectives. A trust can be a valuable tool in your overall wealth plan. Many wealth plans include one or more types of trusts, each of which fulfills a specific need.

Whether you’re leaving a bequest to a charity, providing income for your spouse or giving assets to your children or grandchildren, a trust can be an effective way to build your legacy. 

Some trusts can be modified after they’re created, while others can’t. It’s important to consult with your attorney and wealth professional to determine your intent, so together they can ensure that the appropriate provisions are built into your plan.

Revocable vs. irrevocable trusts and wills: how they compare

Revocable living trusts

Also known as living trusts, revocable trusts allow you to retain control of your assets during your lifetime. You can change your trust at any time.

How a revocable trust is like a will:

  • Both are estate planning documents.
  • Each reflects your wishes regarding asset distribution.
  • Both concern assets that are included in your taxable estate (for estate and inheritance tax purposes).

 

How a revocable trust and a will differ:

  • A revocable trust allows you to avoid probate – which can be a very public and lengthy process – while a will does not.
  • The trustee of your revocable trust can act for you in case of your incapacity to ensure that your needs are met, and your assets are managed appropriately.
Learn about wills and revocable trusts

Irrevocable trusts

Irrevocable trusts can support a variety of goals such as providing financial security for your family and promoting charitable causes. They generally can’t be changed after they’re established, subject to state law.

Examples include:

  • Charitable lead or remainder trusts
  • Credit shelter trusts
  • Domestic asset protection trusts (DAPTs)
  • Dynasty trusts
  • Grantor retained annuity trusts (GRATs)
  • Marital deduction trusts
  • Qualified personal residence trusts (QPRTs)
  • Qualified terminable interest property trusts (QTIPs)
  • Special needs trusts
Learn about irrevocable trusts

Insights from our experts

Types of trusts: Choosing the right one for you

The kind of trust you select should reflect your unique wishes for how your assets are handled now and in the future.

Continue reading

Estate planning as a family

An open dialogue with family members can help you successfully craft your estate plan.

Continue reading

How to set up a trust

A trust requires careful administration, but setting one up is a fairly simple process that generally involves five steps.

Watch the video

Next step

Find an advisor or wealth specialist
Call 844-872-4724
Request a call

Disclosures

Start of disclosure content

Investment and insurance products and services including annuities are:
Not a deposit ● Not FDIC insured ● May lose value ● Not bank guaranteed ● Not insured by any federal government agency.

U.S. Wealth Management – U.S. Bank is a marketing logo for U.S. Bank.

Start of disclosure content

U.S. Bank and its representatives do not provide tax or legal advice. Your tax and financial situation is unique. You should consult your tax and/or legal advisor for advice and information concerning your particular situation.

The information provided represents the opinion of U.S. Bank and is not intended to be a forecast of future events or guarantee of future results. It is not intended to provide specific investment advice and should not be construed as an offering of securities or recommendation to invest. Not for use as a primary basis of investment decisions. Not to be construed to meet the needs of any particular investor. Not a representation or solicitation or an offer to sell/buy any security. Investors should consult with their investment professional for advice concerning their particular situation.

U.S. Bank does not offer insurance products but may refer you to an affiliated or third party insurance provider.