How Does a Trust Work?
- Chad Fuss, Esq.
- Jun 6
- 1 min read
Updated: Jul 1
Grantor/ Settlor> Trustee> Beneficiary
With a will, you write down who gets what assets and that's it, but with a trust you have much more control over who gets what, how much they get, when they get it, and if there is anything else they need to do to receive it.
Trusts are more complex than wills, which means you need someone to enact your wishes. This is where the trustee comes in.
As the grantor/ settlor, you dictate who receives what assets, who your children or pets go to, etc. You may also include things like your kids get a certain amount of money at 18, then more at 21 and more at 30. Or that they can only have money for buying a house. Or that your niece has to finish business school before she gets money to open her dream business, etc.
It'll then be up to your trustee to follow these guidelines upon your passing and relay any directives to your beneficiaries.
Being a trustee is a lot of responsibility, which is why it's important that you choose someone you trust who you believe will follow your guidelines and remain dedicated to your trust as long as necessary.
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