Trust is a fundamental element in any relationship. Whether we’re talking about romantic partnerships, family life, business operations or medical practices, our ability to engage with others depends on having trust in those around us. Mistrust, on the other hand, is a bad feeling, and it’s hard to get the most out of a relationship when you don’t trust that person or organization. While research on trust is ongoing, there are several common determinants of trust. The most important of these are the perception of legitimacy, compliance and reliability. Using the above definitions, it’s easy to understand why trust is so central in all of our lives and why mistrust is often so devastating.

TIAA specializes in retirement and estate planning, so we know that trust is a major component to ensuring that you can achieve your financial goals and leave behind a legacy. A trusted partner can help you develop strategies to manage risk, grow your assets and plan for your future.

Trusts are a legal contract that allow you to transfer property, before or after your death, into an account to be managed by yourself (if living) or others. In addition to avoiding probate, a trust can also be used to more carefully control when and how beneficiaries receive their inheritances. This can be particularly beneficial in situations where the trustee fears that a beneficiary may irresponsibly spend their inheritance or, for example, that someone might not be able to manage money well due to a disability or addiction.

If you decide to set up a trust, your attorney will prepare a document that will grant another party, known as the trustee, the legal right to hold and manage assets for the benefit of one or more persons, called beneficiaries. Depending on the type of trust, you may also be given powers that allow you to act in certain ways in connection with the trust. This includes the power to change the trustee, which gives you flexibility in how you want your trust to be managed and operated.

While creating a trust can be more complex and take longer than drafting a will, it can make all the difference in ensuring that your wishes are carried out after you’re gone. Your attorney can help you determine if a trust is right for your situation and, if it is, what type of trust would be most appropriate. A well-crafted trust can help ensure that your loved ones are protected and able to benefit from the wealth you’ve worked so hard to build. For more information on trusts and how to create one, reach out to your TIAA advisor. These fact sheets should not be considered a substitute for consulting with an attorney or other qualified professional about specific estate planning needs.