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TrustsTrusts are estate planning tools used to designate assets to specific beneficiaries. They can hold a wide range of assets, including cash, real estate, stocks, businesses, and more. If a trust holds cash, that pool of cash is often considered a “trust fund,” although the definition of “trust funds” in particular is nebulous.
While some argue that the concept of trusts dates back to ancient Rome, trusts were further developed in medieval England. During the Crusades, when crusaders left for battle, they would often leave their land and other assets behind to “trusted” friends.
These days, however, there’s a common misconception that trusts are only for children of the wealthy. In reality, many personal finance experts argue that individuals of various net worths should consider establishing a trust.Explore Trusts
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Revocable trusts are typically subject to estate taxesIrrevocable trusts, however, are not. Both types help beneficiaries avoid probate, the lengthy court process that administers a person’s estate upon death. KiplingerReal estate investment trusts help give portfolios more exposure to real estateAlso known as a REIT, a real estate investment trust is a type of company that invests in a portfolio of real estate, such as apartment buildings or malls. Investors can buy shares of the REIT to participate in its portfolio’s gains and losses. Charles SchwabExplore a visual of 16 different types of trustsWhile all trusts fit into one of two categories (revocable or irrevocable), many other types of trusts exist for more specific circumstances. Think: pet trusts and special needs trusts. Legal TemplatesTrusts offer ways to reduce the taxes beneficiaries pay on assets in one’s estatePeople of different socioeconomic classes often decide to establish a trust to avoid certain taxes. When someone dies and leaves assets to beneficiaries in a will, those beneficiaries must pay specific taxes a trust's beneficiaries avoid. It all depends on the type of trust. FidelityRevocable trusts are more flexible than irrevocable trustsIrrevocable trusts are almost impossible for the grantor to change or dissolve. With a revocable trust, the grantor can alter or dissolve the trust at any time. However, there are upsides to irrevocable trusts, too—such as the fact that they’re typically not subject to estate taxes, unlike revocable trusts. Met LifeSpecial needs trusts help financially care for dependents with disabilitiesSpecial needs trusts are a specific type of trust that ensures dependents with special needs still qualify for Supplemental Security Income and Medicaid, given the trust's assets are excluded from the asset limits tests required to qualify for these programs. KiplingerContrary to popular belief, trusts aren’t only for the wealthyTrust funds can be expensive to set up, given that their establishment often requires paying a lawyer for their time. But for many, that expense might be worth it depending on the complexity of the assets and the ability to specify when, where or how an estate’s assets are used. Charles SchwabBoth individuals and businesses can establish trustsBusiness trusts can allow trustees to manage a beneficiary’s stake in a business, and more. There are many different specific types of business trusts. Smart AssetTrusts are estate planning toolsThey’re used as a way to designate assets to beneficiaries while skirting certain taxes and maintaining one’s privacy. They can hold a wide range of assets, including cash, real estate, stocks, businesses, and more. InvestopediaCertain trusts can bypass estate taxes—but the terms can't be changedPutting money and other financial assets in an irrevocable trust is one way to avoid estate taxes. There are some cons to this trust, like the fact that you can't change the terms of the trust or assets in the trust after they're set. But a big pro is that any financial assets in an irrevocable trust aren't considered part of your estate, meaning they aren't subject to death taxes. SmartAsset'It might be that some day I shall be drowned by the sea, or die of pneumonia from sleeping out at night, or be robbed and strangled by strangers. These things happen. Even so, I shall be ahead because of trusting the beach, the night and strangers.'-Janet Reno, the US' first female attorney general (1938-2016) International Business TimesThe United States currently ranks number one for countries that enable the most financial secrecyFinancial secrecy refers to complex systems that make it easy for people and companies to hide assets. High levels of financial secrecy are associated with illegal activity, like drug trafficking and money laundering. Lax regulations around reporting who owns trusts, real estate, and businesses impact the United States' global financial secrecy ranking. Tax Justice NetworkView animated battle maps from every major skirmish of the warThe American Battlefield Trust's animated maps trace every major Civil War battle with moving troop lines, narration, and historical context—bringing the strategies, turning points, and human cost of the war to life. American Battlefield TrustThere are over 20,000 trees on the National MallNearly 4,000 of the Mall's trees are cherry trees, all maintained by a small National Park Service arborist team that provides year-round, science-based care to address soil compaction, root damage, and heavy visitor traffic. Trust for the National MallSocial Security’s financial operations are handled through two federal trust fundsOne is called the Old-Age and Survivors Insurance trust fund, and the other is called the Disability Insurance trust fund. Combined, these two trust funds were valued at roughly $2.7T as of the end of 2024. VoxThe 2025 Social Security Trustees Reports reaffirmed that beneficiaries will be paid 100% of total scheduled benefits until 2033Specifically, it noted that the Old-Age and Survivors Insurance Trust Fund will be able to pay 100 percent of total scheduled benefits until 2033, which was unchanged from the previous year’s report. In 2021, Social Security began drawing down trust fund reserves to help pay for benefitsThe Social Security trust funds are invested solely in US Treasury bonds. Any Social Security tax revenue surplus has historically been invested in these bonds, which are non-marketable securities available only to trust funds. The interest on these investments also contributes to program income. Social Security trust funds are expected to be unable to pay full benefits by 2035Most US workers have 6.2% of their gross paycheck taken out for Social Security. The government requires employers to match that 6.2% as well, for a total of 12.4%. This video dives into the specifics of how Social Security functions from a financial perspective. CNBCWikipedia openly displays edit history and editorial disputes to assess trustworthinessUnlike a journal article, which may be reviewed by up to three people before publication, popular Wikipedia pages may be reviewed thousands of times by editors, potentially enhancing their reliability. Less reviewed articles still require reliable third-party sources and remain subject to verification by bots and administrators who can undo edits. The Conversation'Jeopardy!' was conceived as a way to earn back skeptical audiences' trustIn the wake of the ‘50s scandals, networks were reluctant to greenlight new quiz shows. Merv Griffin’s wife suggested he flip the formula on its head, providing contestants with the answers (the exact act that had led to the scandals) and asking them to provide the questions. “Jeopardy!” premiered in 1964, effectively reviving the genre. It eventually became the top-rated quiz show in history with 23 million viewers. Smithsonian MagazineThe quiz show scandals eroded trust in the mediaMany viewers were attracted to the shows because they were filled with real people winning real money. After it was exposed that “Dotto,” “Twenty-One,” “The $64,000 Question,” and others had been fixed, the genre struggled to regain viewers’ trust. The government intervened, too: President Eisenhower called the shows’ deception “a terrible thing to do to the American people” and Congress amended the Communications Act in 1960, explicitly outlawing fraudulent game shows. VarietyThe word 'dude' was originally used as an insultAlthough the actual origin of the word is unknown, stymologists found the first recorded use in the United States was in the 1880s and referred to a young man, usually from the East Coast, who was overly concerned with his appearance. "Dude ranches" were an informal name for the ranches out West that catered to these types of men. Reader's DigestYou can read First Lady Jacqueline Kennedy Onassis' will onlineUnlike trusts, the contents of a will are public information. Former first lady Jacqueline Kennedy's will included her copy of John F. Kennedy's Inaugural Address signed by Robert Frost and other fascinating historic objects. Learn how to set up a trustSetting up a trust often costs at least a few thousand dollars, given that the process typically requires paying for a lawyer’s time. An article lays out the step-by-step process one should follow in order to set a trust up. US BankA growing number of Americans are leaving trust funds behind for their petsA pet trust ensures that an animal receives financial support and care if its owner can no longer care for the pet. Some lucky dogs have inherited millions of dollars from their owners. The HustleFamous scammer Anna Delvey lied about having a $67M trust fundDelvey conned New York City’s elite with her lies, saying that she was a German heiress and defrauding the city’s banks, restaurants, and more out of more than $275K in just 10 months. Her story was even turned into a Netflix series while she was in prison. ABC NewsSocial Security’s financial operations are handled through two federal trust fundsOne is called the Old-Age and Survivors Insurance trust fund, and the other is called the Disability Insurance trust fund. Combined, these two trust funds were valued at roughly $2.7T as of the end of 2024. VoxThe woman who coined the term ‘girlboss’ now has a VC firm called Trust FundIn 2006, Amoruso founded the clothing company Nasty Gal, then later wrote a memoir called “#Girlboss” about her company’s meteoric rise. Later, she launched other ventures, including her “Business Class” business coaching series and the venture capital fund “Trust Fund.” Masters of ScaleIt’s not always clear whether a will or a trust is the best for an individual estateWhile trusts are typically more expensive to set up than a will, they also help beneficiaries avoid specific types of taxes, depending on the type of trust. Wills typically go through probate, whereas trusts do not. An article offers a list of questions to consider when deciding between the two. Nerd WalletIn a trust, the trustee is often the same person as the beneficiaryWhile a trustee is supposed to be a neutral third party whom the grantor appoints to manage their trust, they can be (and often are) the same person as the beneficiary. While that seems counterintuitive, trustees have a legal obligation to manage assets impartially and in the trust’s best interest. FidelityA revocable living trust is the most common type of trustWith a revocable trust, the grantor can alter or dissolve the trust at any time. A living trust, is one that the grantor creates during their lifetime (as compared to a “testamentary” trust, which a grantor establishes in their will to be read after death). Charles SchwabThe median trust fund contains roughly $285KThat’s according to data from the US Federal Reserve. There isn’t a specific net worth that can help determine whether or not someone needs a trust—but contrary to popular belief, trust funds can be great estate planning tools, even for people who aren’t ultra-wealthy. New York LifeThe Dow Jones & Company began as a small news service in 1882Founded in 1882 by Charles Dow, Edward Jones and Charles Bergstresser, Dow Jones & Company started with hand-delivered market bulletins. Today it’s a global financial news giant, best known for publishing The Wall Street Journal. Dow JonesThe SPDR S&P 500 ETF is one of the most highly traded funds on the marketState Street, a popular ETF issuer, is responsible for the SPDR S&P 500 ETF. This fund trades under the SPY ticker, and State Street maintains a web page with key facts and figures on SPY. For instance, its expense ratio is 0.0945%, or $9.45 on an initial $10K investment. State Street Global AdvisorsThe total cost of owning an ETF is the sum of the holding costs and the transaction costsHolding costs include things like the expense ratio, or the annual fee that a fund issuer charges. Transaction costs include things like brokerage commissions, or the fee that a broker charges to enact a trade. However, in recent years, most brokers have essentially eliminated commissions on ETF trading. Morningstar, Inc.The first home Frank Lloyd Wright designed alone was bold and geometric A small residence sitting on the outskirts of Chicago, Wright’s first building, created entirely from his own artistic vision, was a home for his family. He would continue to live and work there for two decades after building it in 1889. Frank Lloyd Wright FoundationThree ways to save for your child’s futureParents can open a custodial Roth IRA when their child starts to earn income (think: summer job), which can help them start saving early. For example, 529 accounts help parents save for college, while UTMA/UGMA accounts function like trusts. YouTubeNovels sometimes use unreliable narratorsWhen we read a book, we’re effectively forced to take the narrator’s word for what’s unfolding. But what if that narrator has a biased take on those events? What if, in a general sense, that narrator can’t be trusted? Enter the unreliable narrator, a strategic way of shaping a story that adds an additional layer to the narrative. PBSShays' rebellion pitted rebel veterans against the Revolution's leadersThe Revolutionary War led to independence and significant debt for most states. In 1786, a group of veterans and farmers from western Massachusetts protested against the state government’s increased taxes. Led by Daniel Shays, the group attempted to capture an armory in Springfield but failed. American Battlefield TrustThe history of the Sherman Antitrust Act In its later years, Standard Oil formed a business trust that reflected how the company had exponentially grown. Politicians wanted to prevent such trusts and used the Sherman Antitrust Act to force Standard Oil to break up. National ArchivesModern antitrust law was created to combat the Standard Oil TrustJohn D. Rockefeller's Standard Oil Trust allowed him to dodge laws against one corporation buying stock in another. His centralized board of directors held stock in many different oil companies under his control, allowing Rockefeller to eventually monopolize the oil refining industry. QuartzThe aviation industry built trust in automation by keeping pilots in the cockpitAbout 70% of Americans feel uncomfortable riding in a driverless car, and 81% of them would not fly on a pilotless plane. However, automated systems on planes were slowly introduced and advertised as enhancing safety—an approach that may benefit driverless vehicles. Shift: A Podcast About MobilityWhat happens when you can't trust your therapist?When Marty Markowitz first stepped into his new psychiatrist's office, he triggered a three-decade spiral of abuse that robbed him of his autonomy, relationships, and wealth. Markowitz isn't the only client to lay allegations of abuse at the feet of Dr. Isaac “Ike” Herschkopf, an accomplished New York practitioner with a rolodex of celebrity clients who has since lost his license to practice. The Shrink Next DoorSee a chart of public trust in the Federal Reserve An illuminating chart shows the percentage of Americans who trust the current Fed Chair, going back to 2005. See how we went from Alan Greenspan’s 74% trust level to Janet Yellen’s 38%. Visual CapitalistThe dollar’s value stems from public trust and demandIn simple terms, a dollar bill’s value relies on two elements: that people believe it will be accepted in exchange for goods and services, and how much demand for the currency there is. TEDCryptocurrency's roots stretch back five decadesIn 1976, a pair of computer scientists released a protocol for cryptographic communications, sparking the nascent field of sending secure information over the future internet. More than a decade later, the first attempt at an anonymous, digital cash alternative was made. Trust MachinesRun your own social media Trust & Safety team with this eye-opening gameEver wondered what really goes on behind the scenes at a popular social media company trying to keep users, businesses, and workers safe? Now you can try out your own ideas for moderation and management with this fun and informative game designed to... Atlantic CouncilAn inventory of ancient trees in the United KingdomThe world is filled with trees that are hundreds—if not thousands—of years old, and the UK's Woodland Trust believes each one deserves the same protections great cathedrals and castles receive. This active database invites users to peruse... Woodland TrustDo we trust the internet?Americans have been losing trust in public institutions for decades. This podcast episode features a conversation between a legal expert and a content moderator expert, examining whether that skepticism extends to the internet. iDPIHow existing technology could prevent nearly 80% of plastic pollutionMore than 28 million tons of plastic enters the environment each year, where it harms animals and damages habitats. A study co-authored by researchers at The Pew Charitable Trusts found that this flow can be reduced by nearly 80% in the next 20 years using existing waste management and recycling technology. The Pew Charitable Trusts
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