SimplyTrust Knowledge Base

A: Generally, you shouldn’t transfer ownership of your life insurance policy into your trust unless you have a specific reason (like tax planning in very large estates). However, you can name your trust as the beneficiary of the life insurance policy, thereby ensuring that the benefits go where you want them to.

A: A simple trust is a type of trust that must distribute all its income to the beneficiaries each year. It can’t make charitable donations, and it can’t dip into the trust principal (the original assets placed into the trust) for distributions.

A: Sure, your social calendar may now include “wine with dinner on a Tuesday” and “binge-watching a show uninterrupted,” but this transition also comes with more headspace—and often, more time—to organize your affairs. Your kids are now adults, which means: 1) You may no longer need guardianship designations, 2) Your asset picture may have changed dramatically (hello, paid-off mortgage), and 3) Your priorities may have shifted—perhaps from soccer practice to sabbatical plans. Estate planning for empty nesters lets you realign everything with your current reality—and your future wishes.

A: If someone passes without an estate plan in place, state laws take over. These laws—known as intestate succession laws—usually give the surviving spouse priority. In blended families, that can mean: a new spouse inherits the bulk of the estate, children from previous relationships inherit little or nothing, or sentimental or family-owned property ends up in the wrong hands.

A: Trusts can make a meaningful difference when navigating long-term illness. They allow you to set aside assets to be managed by a trustee—someone you trust to follow your instructions. These instructions might include how to use the assets, when, and for whom.

A: A beneficiary is someone who stands to receive assets from another person, typically through a legal document like a will, trust, insurance policy, or retirement account. These assets might include money, property, investments, or other personal items. A person can name one or multiple beneficiaries and can usually update this list at any time.

A: Retirement trusts are legal arrangements where you transfer assets to a trustee who manages them according to your specific instructions. The trustee holds legal title to the assets while you retain beneficial ownership during your lifetime. You can serve as your own trustee initially, maintaining complete control over your assets. These trusts come in various forms. Revocable living trusts remain the most popular choice for retirement planning because you can modify or revoke them at any time. Irrevocable trusts offer different advantages, particularly for tax planning and asset protection.

A: Whether you’re newlyweds or about to tie the knot, this life milestone is a perfect time to think about setting up a trust. Trusts aren’t just for the ultra-wealthy. They’re for anyone who wants to stay organized, avoid future headaches, and protect the people (and pets) they care about most.

A: Medicaid is a government program that helps cover healthcare costs, especially long-term care, for people with limited income and assets. The catch? To qualify, someone usually has to reduce their assets to a very low level. For many people, that means making tough choices—like selling the family home or draining savings. But that’s where trusts can help. Used properly, a trust can protect certain assets from being counted against Medicaid limits.

A: Inheriting wealth can feel intimidating at first—but it also presents an opportunity. With the right steps, anyone can preserve what someone has passed on to them, avoid common pitfalls, and shape a future that reflects specific goals. Trusts for inheritance offer structure, protection, and peace of mind. They help ensure that new responsibilities turn into lasting benefits—for inheritors themselves and the people they care about most.

A: Let’s be honest—your house is probably one of your biggest assets. And if you own it in your name when you pass away, it may have to go through probate. That’s the legal process of proving your will and transferring assets, and it can take months (sometimes longer) and cost your family time and money. Putting your house in a trust (i.e., naming the trust as the beneficiary of the house) avoids all that. The trust owns the house, so the trustee (the person you name to manage things) can transfer it to your beneficiaries without going through court.

A: When you’re downsizing—selling your current home and moving into something smaller (hello, less vacuuming)—you’re doing two things at once. One, moving assets around and, two, planning for the future. Trusts help you do both.