Estate Planning Basics: An Introduction to Trusts

Mitchell Lansky
Nov 13
3 min read

Updated for 2025 | The Lansky Law Firm Estate Planning Resource Center

Trusts are frequently discussed in estate planning, yet many individuals are unsure what they actually are or how they function. At their core, trusts are legal arrangements designed to manage and protect assets for the benefit of someone else—whether that’s a spouse, children, loved ones with special needs, charitable causes, or future generations.

At The Lansky Law Firm, we help families create trust-based estate plans that reflect their values, protect their legacy, and reduce stress and uncertainty for the people they care about most. Trusts are no longer tools used only by the wealthy—they are widely relied upon as a thoughtful and strategic way to safeguard what matters.

To help you understand how a trust works, let’s explore some key components shared by most trusts.

The Grantor

The grantor—sometimes called the trustor or settlor—is the individual who creates the trust and establishes the governing rules. The grantor has the legal authority to transfer assets into the trust and outline how those assets will be managed, used, and distributed.

The Beneficiary

The beneficiary is the person (or organization) that receives the benefits of the trust. A trust may have one beneficiary or multiple beneficiaries, and may support family members now or future generations. Beneficiaries may also include charitable organizations, scholarship funds, ministries, or community foundations—allowing individuals to make a meaningful legacy impact.

The Trustee

The trustee is the person or institution charged with managing the assets inside the trust. Trustees must follow the instructions in the trust document and act in the best interest of the beneficiaries at all times. This fiduciary role may include:

Managing investments responsibly
Handling taxes and financial distribution
Distributing assets according to the trust’s directions
Maintaining accurate records and communication

Trustees are held to a high legal standard of care, honesty, and loyalty.

Trust Funding

A trust is only effective if it is correctly funded. Funding a trust means transferring ownership of assets—such as real estate, bank accounts, life insurance policies, investment accounts, business interests, or family heirlooms—into the name of the trust.

Any assets not transferred into the trust are not governed by it and may still be subject to the probate process—something many families hope to avoid.

Why Trust Planning Matters in 2025

The estate planning landscape continues to evolve, and 2025 brings key considerations that make trust planning more valuable than ever:

Digital assets now play a major role in modern estates, including cryptocurrency, online accounts, cloud storage, and digital portfolios. Trusts help ensure access and secure transition.
Long-term care and disability planning needs are increasing, and trusts can protect assets while ensuring support for healthcare expenses.
Blended and nontraditional families are more common, and trusts help ensure fairness and clarity.
Trusts help reduce confusion, conflict, and financial burden, offering structure and guidance when families need it most.

Looking Ahead

In an upcoming article, The Lansky Law Firm will explore the differences between revocable and irrevocable trusts and how each can help meet goals such as:

Avoiding probate
Protecting assets from lawsuits or long-term care costs
Minimizing taxes
Providing for children or loved ones with special needs
Supporting charitable giving
Building a generational legacy

Whether you are planning ahead for children, protecting a lifetime of hard work, or striving to create peace and stability for the future, a trust can be a powerful expression of care and intention.