Questions to Ask About a Trust
Essential questions to ask when setting up, managing, or inheriting from a trust to understand structure, responsibilities, tax implications, and how it serves your estate planning goals.
1What type of trust is this, and how does it work?
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What type of trust is this, and how does it work?
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Why this works
Clarifies whether it's revocable, irrevocable, living, testamentary, or another structure.
2What are the benefits of using a trust for my situation?
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What are the benefits of using a trust for my situation?
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Why this works
Ensures the trust aligns with your estate planning, tax, or asset protection goals.
3Who are the grantor, trustee, and beneficiaries, and what are their roles?
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Who are the grantor, trustee, and beneficiaries, and what are their roles?
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Why this works
Defines who controls, manages, and benefits from the trust.
4Can the trust be changed or revoked, and under what circumstances?
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Can the trust be changed or revoked, and under what circumstances?
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Why this works
Reveals flexibility and whether you retain control over the assets.
5What assets should be placed in the trust, and how do I transfer them?
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What assets should be placed in the trust, and how do I transfer them?
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Why this works
Identifies what goes into the trust and the process for funding it.
6What are the tax implications of creating and maintaining this trust?
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What are the tax implications of creating and maintaining this trust?
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Why this works
Addresses income, estate, and gift tax consequences.
7How will the trust be managed, and what are the trustee's responsibilities?
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How will the trust be managed, and what are the trustee's responsibilities?
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Why this works
Clarifies day-to-day administration and fiduciary duties.
8What fees or costs are associated with setting up and maintaining the trust?
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What fees or costs are associated with setting up and maintaining the trust?
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Why this works
Prepares you for legal, trustee, and administrative expenses.
9How does the trust protect assets from creditors, lawsuits, or claims?
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How does the trust protect assets from creditors, lawsuits, or claims?
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Why this works
Assesses asset protection benefits and limitations.
10What happens to the trust if I become incapacitated or pass away?
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What happens to the trust if I become incapacitated or pass away?
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Why this works
Ensures continuity and that your wishes are followed.
11When and how do beneficiaries receive distributions from the trust?
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When and how do beneficiaries receive distributions from the trust?
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Why this works
Clarifies timing, conditions, and discretion around payouts.
12Can the trustee be removed or replaced, and how does that process work?
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Can the trustee be removed or replaced, and how does that process work?
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Why this works
Provides safeguards if the trustee isn't performing or conflicts arise.
13How does this trust interact with my will, other trusts, or estate plan?
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How does this trust interact with my will, other trusts, or estate plan?
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Why this works
Ensures all documents work together without conflicts.
14What reporting or record-keeping is required for the trust?
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What reporting or record-keeping is required for the trust?
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Why this works
Clarifies administrative burden and compliance obligations.
15Are there any restrictions on what beneficiaries can do with trust assets?
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Are there any restrictions on what beneficiaries can do with trust assets?
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Why this works
Reveals whether assets are protected from beneficiaries' creditors or poor decisions.
16What happens if a beneficiary passes away before receiving their share?
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What happens if a beneficiary passes away before receiving their share?
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Why this works
Addresses contingencies and ensures backup plans are in place.
17How does the trust avoid probate, and what are the benefits?
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How does the trust avoid probate, and what are the benefits?
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Why this works
Highlights one of the main advantages of using a trust.
18What state laws govern this trust, and does that matter if I move?
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What state laws govern this trust, and does that matter if I move?
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Why this works
Clarifies jurisdiction and whether relocation affects the trust.
19What should I do to keep the trust up to date over time?
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What should I do to keep the trust up to date over time?
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Why this works
Ensures the trust remains aligned with changing laws, assets, or family dynamics.
20What questions should I be asking that I haven't thought of?
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What questions should I be asking that I haven't thought of?
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Why this works
Invites your attorney or advisor to identify overlooked issues.
Understanding and Using Trusts
Expert tips and techniques for getting the most out of these questions.