Estate planning involves distributing tangible assets, and trusts can be used to manage and divide property. Trusts allow control over property distribution after death, and estate planning may favor trusts over wills due to perceived advantages.
The estate planning process refers to the provision by any owner of tangible assets, such as land, planes, money and other types of assets for distribution thereof. In other words, estate planning refers to the processes by which someone will order their affairs in terms of delineating the recipients of the property, all of which is aimed at ensuring that such items are not left unaddressed when the individual dies. As such, the relationship between estate planning and trusts lies in the fact that trusts are instruments that an individual can use to sort out loose ends by clearly stating the terms under which any property will be managed and divided.
In this situation, the relationship between estate planning and trusts is the fact that the person making the trust uses it as an instrument to place their affairs in the hands of a trustee who will manage said property in accordance with the person’s wishes. made by the trust. the trust. The trustee can be a trust company or just one or two people. In either scenario, the duty remains the same, which is to equitably administer the trust property to the trust beneficiaries to the best of their ability. The creation of a legal trust relationship confers obligations on the trust administrator, including due diligence in managing the trust property for the benefit of the beneficiaries.
Another link between estate planning and trusts is the fact that estate planning may be favored by some individuals over wills due to some perceived advantages inherent in using trusts for estate planning purposes. One advantage of a trust is the fact that it allows the property owner to distribute property to designated recipients in a way that allows you to control the distribution of said property even after death. For example, a mother might create a trust to benefit a young child who may only be 10 years old at the time of her death. As part of the trust provisions, the mother could specify to the trust administrators that her son will only inherit half of the property at age 21 and receive the remainder at age 35, after meeting a set condition. . Her purpose for doing this might be to make sure the son becomes a responsible man in the future, so she can combine estate planning and trusts.
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