Trust can take many forms. It can mean believing in an abstract idea, like that everything happens for a reason. It can also be something very concrete, like the faith that a person will return your car after you loan it to them. And then there are the types of trusts that help people set aside money to protect their assets from future risks. Trusts are commonly used to manage the distribution of wealth after someone passes away, to plan for incapacitation or to protect heirs from creditors and others who might try to get their hands on their property.

A common type of trust is a living trust, which allows the grantor (the person who sets up the trust) to be their own trustee while they are still alive and then name a successor trustee to take over after their death. Other types of trusts include revocable and irrevocable trusts. Depending on the situation, it is sometimes beneficial to have both a revocable and irrevocable trust.

The benefit of a trust is that it can help avoid the cost, time and public record of probate. It can also keep the details of your estate private and can help ensure that the trustee you choose is a good fit for your situation. The downside of a trust is that it can be more complicated to set up and requires careful record-keeping. It can also be more expensive than a traditional will and may require ongoing fees to manage the trust’s assets.

Another drawback is that it can take years or even decades for beneficiaries to receive their funds from a trust, depending on the terms of the trust. This can be a big problem for those who need their inheritance immediately, such as young children or individuals with disabilities.

In order to determine if a trust is right for you, it’s important to talk with an attorney who has experience creating trusts. It’s also a good idea to consult with estate planning and tax professionals, so they can understand your entire financial picture and make recommendations about which kind of trust is best for you. If you are considering a trust, your Northwestern Mutual advisor is a great place to start. They can help you discuss your options, explain the benefits of different kinds of trusts and help you set up a trust that aligns with your goals.