MONEY MATTERS: What is a trust?
What is a trust and what is it designed to do?
Well first off when you're talking trust it's like cars, there's all kinds of makes and models of trust. In general in the broad sense there's the revocable trust and irrevocable trust. Think of a trust as a bucket. It's a bucket you can transfer assets to and the bucket is to benefit someone else. If it's a revocable trust as well until you pass away. Then it's set up to direct where your assets are going to go down the line.
How is this different then a will?
I look at it as a trust to guide your assets while you're alive and will does it upon death. And even if you have a revocable trust doesn't mean you don't need a will. Because often times if people sets up a trust they don't transfer all their assets in there. And so you got what they call an unfunded trust.
Kruse Financial does financial planning for people. We believe in the team approach and we're blessed in Sioux City. We have many very good estate planning attorneys on board when we're doing a plan with people as well.