The Living Trust

Living Trusts are set up primarily for the benefit of the person who established it during his or her lifetime. Trusts are a valuable tool in the estate planning process because they allow assets to be passed to heirs without going through the probate process. They can also provide income for the beneficiary in case of incapacity.

Terms of the trust are detailed in a Trust Agreement that defines how you want your finances managed during your lifetime and following your death. These terms can usually be modified or terminated at any time during your lifetime. When you die, however, the terms of the trust are not subject to further change, and the trust either terminates or continues for the benefit of the designated beneficiaries.

As your corporate trustee, The Haverford Trust Company will be responsible for managing trust investments; distributing the investment income to you at regular intervals; investing new funds that might be added to the trust from time to time; and paying any distributions.

If your spouse survives you, he or she could be named to succeed you as primary beneficiary. At the death of your spouse, the trust could terminate, with the remaining funds distributed among your children or other beneficiaries. Or, the trust could continue for the benefit of your beneficiaries until they reach a specified age.

A Living Trust allows for many variations. No framework for personal financial planning is more versatile or more flexible. With a Revocable Living Trust, you can change beneficiaries, alter any other instructions contained in the Trust Agreement, or even cancel the trust should the arrangement cease to meet your needs.