Step 5 – Understand trusts and wills
A trust is an estate-planning tool designed to hold assets for another person. A trust is set up by a grantor, who transfers ownership of property (such as real estate or securities) into it and names one or more beneficiaries who will receive the assets after his death. The trustee manages the property during his lifetime, according to terms in a written document—usually called a trust agreement—that spells out how much control he can exercise and how much freedom he has in spending or distributing income.
Step 6 – Name a trust protector
In addition to a will, it’s important to have a trust protector in place. A trust protector is simply someone that can safeguard your wishes if something happens to you and ensure that they’re carried out as you intended.