A trust is a legal document that layers on top of the assets you already own. It sets the rules for those assets: who manages them, who benefits from them, and what happens to them over time. Your ownership does not change overnight. You are adding a layer of structure and instruction on top of what is already yours.
There are three roles, and early on they are often the same person:
- The grantor: you, the person who creates the trust.
- The trustee: whoever manages it by the rules you set. At the start, that is usually you.
- The beneficiary: whoever benefits from it, such as you, your spouse, or your children.
Putting assets into a trust is called “funding” it. In practice, that means retitling certain assets into the name of the trust, for example your home or an investment account. The asset itself is unchanged. The name on the title is what moves.
There are two main types, and they differ on one thing: control.
A revocable trust keeps you fully in control. You can change the terms or unwind it at any time. Its main job is to keep your estate out of probate, the slow and public court process that otherwise sorts out your assets. You hold the same access you always had.
An irrevocable trust asks you to give up direct control. In return, it offers far more: rock-solid asset protection, at least in South Dakota, tax benefits when you pass assets to your heirs, and potential tax benefits during your own lifetime when it is structured correctly.
Most estates are best served by a combination of the two. The revocable trust is the foundation. The irrevocable structures are where the long-term protection and tax advantages live. The right mix depends on your situation, and that is a conversation we can have once you are on the Veros platform, where we help you put it together compliantly and cleanly.