Trust Services

What is a Trust?

A trust is a legal arrangement designating one or more people or a legal entity as a trustee to manage and distribute the assets held in the trust to a beneficiary named in the trust. A trust involves three primary parties: the trustor (or grantor, the person creating and contributing property to the trust), the trustee and beneficiary or beneficiaries. Many times, a legal entity is named as a co-trustee along with an individual trustee, to help manage the often complex, time-consuming and burdensome duties of managing the trust.

There are many types of trusts that serve to meet a wide range of personal goals — from ensuring the lifetime care of a child with special needs — to donating to charity — to avoiding probate and maintaining privacy. Types of trusts include but are not limited to:

  • Revocable (Living) Trust – enables proper management of assets during life and after death while avoiding probate; can be changed at any time during life, but after death, all instructions set forth must guide the trustee’s actions
  • Irrevocable Trust – can be used to gift while protecting from creditors and estate taxation
  • Testamentary Trust – created in a person’s will, they don’t avoid probate but allow for flexibility to handle different situations that arise
  • Charitable Trust – enables gifts to charity while simultaneously retaining an interest in the donated property; provides the trustor with an income stream for a set period or until death
  • Spendthrift Trust – provides structured resources for a person whom the trustor feels has poor judgment in regard to spending
  • Special Needs Trust – provides financial support for a disabled or incapacitated family member without jeopardizing the individual’s eligibility for government assistance
  • Marital Life Estate (AB) Trust – funded by both spouses, allows couples to reduce or avoid federal estate taxes
  • Qualified Terminable Interest Property (QTIP) Trust – enables the trustor to provide financial resources to one beneficiary’s (such as a spouse), with any funds remaining at the beneficiary’s death going to another beneficiary or beneficiaries (such as children from a previous marriage)

With the variety of trusts available to address specific circumstances and needs, it’s easy to see how a trust may benefit you and your family.

Contact us today to learn more about how a trust may fit into your financial plan.



Strategic Partnership with Members Trust Company

Northwest Financial Advisors has a strategic partnership with Members Trust Company to provide access to comprehensive professional trust services.

Members Trust Company is a federal thrift regulated by the Office of the Comptroller of the Currency. Trust and investment products are not deposits of or guaranteed by the trust company, a credit union or credit union affiliate, are not insured or guaranteed by the NCUA, FDIC or any other governmental agency and are subject to investment risks, including possible loss of the principal amount invested.
This page is provided for informational purposes only and is not intended to provide legal or tax advice. For legal or tax advice, please consult an attorney and/or accountant. A licensed attorney in your state of residence is needed to draw up a trust. A Northwest Financial Advisors or Members Trust Company representative can provide references to qualified and reputable estate planning attorneys. Legal services are not offered or endorsed by Northwest Financial Advisors, Members Trust Company or LPL Financial.
Members Trust Company is not affiliated with Northwest Financial Advisors or LPL Financial. You are under no obligation to use the services of Members Trust Company and may choose any qualified professional to provide trust services.