Forbes Hansen is contributed by Forbes Hansen, American Dream Real Estate Services, Inc. This article is published in the Fall/Winter 2026 Edition of Vibrant Senior Options Resource Guide Magazine.
As we grow older and accumulate assets—especially real estate—estate planning becomes increasingly important. One useful estate-planning tool is a trust. A trust is a legal arrangement that allows property and assets to be held and managed for designated individuals or organizations. When established, a trust provides instructions for managing property during your lifetime and for distributing it after your death.
The Different Types of Trusts
Revocable Living Trusts are the most common types of trusts. A Revocable Living Trust allows the person creating the trust to retain control of the assets and modify or revoke the trust during their lifetime. Real estate, investment accounts, and other property can be transferred into the trust and later distributed according to its instructions. Assets properly held in a living trust may help avoid probate and may provide greater privacy.
Irrevocable Trusts generally involves giving up greater control over assets and usually cannot be easily changed. These trusts may be used for tax, asset-protection, charitable, or long-term estate-planning purposes.
Testamentary Trusts are created through a will and become effective after death. Other specialized trusts include Land Trusts, Special Needs Trusts, and Charitable Trusts.
Because every situation is different, it is important to understand the options before deciding what type of trust, if any, may be appropriate for you.
Who Does What?
The person establishing a trust is called the grantor, trustor, or settlor. Another appointment is the trustee, who manages the assets according to the trust’s instructions and has a fiduciary responsibility to act in the beneficiaries’ best interests. A successor trustee should also be named in case the original trustee cannot serve.
Beneficiaries are the individuals or organizations who benefit from the trust.
An executor, also called a personal representative, is named in a will to administer the remaining estate, including debts, expenses, and assets that may pass through probate.
Don’t Overlook Real Estate
Real estate deserves particular attention when creating an estate plan. A trust can specify whether property should be sold, maintained, rented, transferred to a beneficiary, or held for future generations.
Clear instructions can help reduce confusion and prevent disagreements or legal disputes among family members after your death. For property that has financial or sentimental value, making your wishes clear in advance can be especially important. This is one of the biggest things missed when estate planning, and it can cause years of turmoil for beneficiaries.
Communicate Your Intentions
Depending on your situation, discussing the estate plan with children and heirs can help them understand your intentions, who will serve as trustee or executor, and how properties will be handled.
A trust may not be the best solution for every person or every property. Consider discussing your estate plan with an experienced estate-planning attorney to understand your legal options, and with a CPA or qualified tax accountant about any tax consequences.
Estate planning is about more than deciding who receives your property. The right documents, professional guidance, and family communication can help protect your real estate, preserve your estate and family relationships, and make transferring assets easier for those you leave behind.
Forbes A. Hansen
Real Estate Broker, SRES
American Dream Real Estate Services, Inc.
360-507-5175
