How it works
The grantor typically serves as initial trustee, keeps control of assets, and names a successor trustee to step in upon incapacity or death. Because the grantor retains control, the assets are generally still treated as the grantor's for tax and creditor purposes.
Common uses
- — Probate avoidance for funded assets
- — Incapacity planning
- — Privacy compared with a public probate process
Key considerations
- — Generally offers no creditor protection during the grantor's life
- — Only assets actually retitled into the trust are governed by it
- — Does not by itself reduce income tax
Educational content only. Not legal, tax, or investment advice. Trust law differs by jurisdiction. Consult qualified professionals before acting.
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