Trusts have become the superheroes of estate planning. They can slice away at taxes, avoid the probate system and give you more control over your estate.

Sounds great! If only trusts could save the day for everyone... but all trusts are not alike. A trust can be created for any purpose that is not illegal or which is not against public policy, limited only by the imagination of lawyers. There are no technical rules restricting the creation of trusts. The duties of the trustee are such as the creator of the trust may choose to impose; the interests of the beneficiaries are such as he or she may choose to confer upon them.

When deciding whether an asset should be transferred outright or transferred in trust, there are some significant factors to consider:

• Beneficiary's capacity to prudently manage the property
• Beneficiary's current legal capacity and probability of becoming incapacitated at some time
  Beneficiary's propensity to be unreasonably influenced by others
• Beneficiary's probability of divorce
• Beneficiary's probability of being charged in paternity/maternity suit
• Beneficiary's probability of facing large claims of creditors, including the government for unpaid taxes
• Beneficiary's probability of needing to expend corpus
• Relative additional costs of creating and administering a trust
• What benefits a trust can or may provide
• Entitlement or eligibility to receive income or other periodic payments
• Entitlement to make or participate with others in making investment decisions
• Entitlement to control the distribution of trust assets to others (lifetime or at death) including payments to descendants, spouse and charity
• Specific and well-known asset management vehicle
• Protection from claims of creditors (depending upon trust terms, the settlor's interest in and control over the trust and governing law), including governmental claims
• Elimination or reduction in taxation
• Income taxes
• Wealth transfer taxes
• Protection from foolish/unwise dissipation of wealth

Be certain that this terrific tool is used properly for your situation and estate plan. So do it right! We recommend that you get assistance from an estate planning attorney familiar with trusts and your individual situation. For more information, please contact the professionals at North Central Trust Company by calling
1-800-658-9474.

The articles and opinions in this publication are for general information only and are not intended to provide specific advice or recommendations for any individual.