Many folks believe that you have to be rich to have a trust, is that true?

The answer is No. But you do need to own property or have some funding source for the trust. As a refresher, a trust is an agreement between the Grantor (Settlor) and Trustee regarding the management and distribution of trust property. Typically, during the Grantor’s life, she is the trustee and manages the trust, however, with disability or death, a successor trustee will administer the trust according the the rules.

One of the benefits of a fully funded trust is that it avoid probate and protects a family’s privacy. The reason a trust avoid probate is the trust not the decedent (person who passed away) actually owns the property. Trusts are not necessarily for the rich, they can cost a little more money upfront but when it comes time for distribution of assets, it can save the family legal and court fees.