Updated for 2025 | Duncan Legal, PC Estate Planning Education Series
Trusts are often mentioned in estate planning conversations, yet many people are unsure what they truly are or how they function. At their core, a trust is a legal arrangement designed to manage and protect assets for the benefit of someone else, whether that is a family member, a loved one with special needs, a charitable cause, or future generations.
At Duncan Legal, PC, we believe trusts provide families with clarity, control, and peace of mind—ensuring that what you’ve worked hard to build is preserved and passed on according to your wishes. Today, trusts are used by families of all types as a thoughtful planning tool rooted in care and intention.
Key Roles Within a Trust
The Grantor
The grantor—also called the trustor or settlor—is the person who creates the trust and establishes the rules for how it will operate. The grantor transfers assets into the trust and outlines how those assets should be managed and distributed.
The Beneficiary
The beneficiary is the person or organization that receives the benefit of the trust. A trust may support one beneficiary or several, and may include:
- Children or grandchildren
- Loved ones with disabilities or long-term needs
- Future generations
- Charitable organizations, community foundations, or scholarship programs
Trusts allow your legacy to support the people and causes that matter most to you.
The Trustee
The trustee is the individual or institution responsible for managing the assets placed into the trust. A trustee must always act in the best interest of the beneficiaries and follow the instructions outlined in the trust document. Responsibilities may include:
- Carefully managing investments
- Handling tax filings and financial reporting
- Distributing assets according to the trust’s terms
- Maintaining communication and transparency
This is a fiduciary role, meaning the trustee is legally held to a high standard of honesty, care, and loyalty.
Funding the Trust
A trust must be funded in order to be effective. Funding a trust means transferring ownership of assets—such as bank accounts, real estate, investments, life insurance policies, business interests, or family heirlooms—into the trust’s name.
Assets not transferred into the trust are not governed by its instructions and may be required to go through probate.
Why Trust Planning Matters in 2025
The estate-planning landscape continues to evolve, and 2025 brings several important considerations that make trust planning more valuable than ever:
- Digital assets—including cryptocurrency, online accounts, and cloud-based files—now play a major role in modern estates, and trusts help ensure proper access and transition.
- Long-term care needs continue to rise, and trusts can help protect assets and resources when care or support is needed.
- Blended and nontraditional families are increasingly common, and trusts provide clear direction, reducing the risk of conflict or unintended outcomes.
- Trusts are no longer tools only for the wealthy—today they are practical strategies for families of all means to avoid confusion, preserve stability, and minimize emotional and financial strain.
Looking Ahead
In our next blog, we will explore the differences between revocable and irrevocable trusts, and how each type can support planning goals such as:
- Avoiding probate
- Protecting assets from lawsuits or long-term care expenses
- Reducing or managing tax obligations
- Providing for children or loved ones with special needs
- Supporting charitable gifts
- Building intergenerational legacies
Whether you are protecting a lifetime of effort, planning for your family’s future stability, or protecting someone who depends on you, a trust can be a meaningful expression of love, responsibility, and preparation.
