When someone dies, wealth is often transferred to a beneficiary through legal estate planning tools known as wills and trusts. While wills take effect only after the person’s death, trusts can take effect while the grantor is still living.

Trusts
A trust is created by the “trustor” to provide legal protection in the transfer of their assets to another person or persons (called the
“beneficiaries”).

Pros
• Simple to execute and usually not subject to probate
• May avoid some estate taxes
• May lay out more specific terms than a will, such as at what age a beneficiary can receive assets or what the assets are used for

Cons
• May be more time-consuming or costly to create
• Typically requires legal assistance to create
• May be difficult (or impossible) to revoke or change
• May force you to give up control of a specific asset

A “living trust” takes effect when the grantor is still alive while a “testamentary trust” takes effect when the grantor dies (as part of a will). The trustor can provide detailed instructions on how and when the assets are distributed. Please visit
https://www.easternbank.com/personal-banking/financial-academy for more information