Over the years, I have met many property owners who do not have a trust or will. This can cause serious probate issues and delay passing this asset to your heirs.

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It’s important to consult legal and tax advisors on the tax implications of placing and distributing assets from a trust.

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Estate planning involves essential decisions to protect family resources and achieve long-term financial goals. When high-value assets are involved, those decisions become even more critical. Establishing a trust can provide peace of mind and clear direction to your heirs.

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What Is a Trust?

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A trust is a form of property ownership that separates the beneficial ownership of assets from the legal ownership. To establish a trust, an owner (grantor) transfers ownership of assets to a trust managed by a trustee, who uses trust assets for the trust's beneficiaries (open the grantor’s heirs). Trusts can provide financial support for family members, protect family assets from various risks, and create tax efficiencies.

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• Asset management – Grantors can use a revocable trust to separate assets, allowing them to be managed and distributed separately from other assets.

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• Protection from incapacity – With the appropriate terms, a revocable trust allows the trustee (or a successor trustee, if the grantor is the original trustee) to continue managing assets in the trust in the event the grantor is incapacitated.

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• Probate benefits – Because assets in a revocable trust are no longer owned by the grantor, they do not need to go through the probate process upon the grantor’s death.

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• Privacy – Wills that proceed through probate generally become public records, but in most jurisdictions a revocable trust does not.

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• Estate disposition – A revocable trust can serve as the primary vehicle for distributing a grantor’s assets to heirs after death.​

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It’s important to consult legal and tax advisors on the tax implications of placing assets in and distributing assets from a trust.

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Setting up a trust- Speak with an expert

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A trust involves complex decisions about assets, beneficiaries and trustees. You’ll want to assess what assets should be transferred to the trust, how you want them to be distributed, and the tax implications of those decisions. Because you’ll need legal, tax, and financial guidance, it’s important to remember that establishing a trust can be a time-consuming exercise and may include the payment of legal and accounting fees. Your PNC Private Bank team can help you determine if a trust may be right for you.