For many, the terms “insurance planning and trusts” are thought to apply only to the affluent. Insurance planning and trusts, however, are no longer exclusively for the wealthy. In fact, millions of Americans are planning their future using trusts. Why? Because over the past two decades, significant increases in income, real estate, property and other investments have helped increased their values. This period of wealth building is now transitioning into a period of preservation. Trusts represent a popular, effective way to protect assets and transfer them to the next generation.

Each trust is customized in one form or another to meet a family’s financial needs and goals. Thus, trusts come in many types. For example, a testamentary trust is usually created by your will and becomes effective upon your death. A living trust, as the name suggests, is created during your lifetime. It may be either revocable (may be altered, amended or even terminated) or irrevocable (usually cannot be changed or terminated).