How a Financial Planner Helps in Creating and Managing a Trust

What Role a Personal Financial Planner Plays in Creation and Management of a Trust?

To create a proper financial plan that will yield expected results what you will have to do is get in touch with a personal financial planner and work according to recommendations provided by the planner. In the context of financial planning, we will look into the creation of a trust and its benefits as well as what you should include in the trust.

Creation of Trust

personal financial plannerThe good thing about creating a trust is that it works as an ideal way to protect your assets, leave a legacy and avoid expenditure on probate. Probate, as you must be aware of, is an estate administration method which is utilized for delegating assets and estate of an individual after his or her death. Usually, this process is quite time-consuming and results in a lot of expenditure. Thus, these issues can be avoided by setting up a trust.

What is Included in the Trust?

You should consult your personal financial planner to know about all the things which can be included in your trust. However, in general, you can include real estate, cash, life insurance settlements and investments into the trust. Moreover, trusts tend to vary in their scope, size as well as benefits and in addition to it, these can also have varied requirements. As for instance, a trust can utilize certain exemptions with respect to assets that are jointly owned and also provide survivorship rights. Similarly, a trust can have designated beneficiaries for different assets which consist of annuities, retirement accounts, and similar other assets.

What are the Advantages of Making a Trust?

A personal financial planner will always suggest that your create a trust due to the advantages it provides. Let us go through the details in this section.

Provides Necessary Protection: The good thing about creation of trust is that it helps in protecting assets from probate fees as well as lawsuits. The assets in a trust are also shielded from creditors and probate fees is not to be paid for the same. Clear division of assets through trust also helps in reducing the likelihood of lawsuits occurring between heirs.

Reduce Taxes: Tax protection provided by any trust depends upon kind of trust you have created. As for instance, any life insurance trust will be useful for protecting death benefits of a life insurance from likely estate taxes. 

Ample Flexibility: Another reason a personal financial planner suggests creation of trust is due to the fact that due get required flexibility of deciding how assets are to be divided between beneficiaries. As for example, it is up to you to decide at what interval or age, the funds included in the trust are to be distributed.

Appropriate Investment Strategy: As per laws, trustee has the responsibility of managing funds in a trust in a correct as well as honest manner. In addition to it, trustee has to maintain cash in accounts that bear good interest and perform assessment on continual basis to evaluate risks, investments, diversification opportunities and returns. The trustee can be a personal financial planner or an investment firm, meaning your assets are invested in most appropriate manner.


To summarize we will say that if you want to make a plan for your future then creating a trust will be the right decision.

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