As I set pen to paper (technically, fingers to keyboard) in writing this blog series, I can’t help but think how excited every reader will be to learn more about the fascinating world of trusts.  I think you’ll find this as exciting as watching paint dry, or dare I say, coloring in the zeros of a phonebook. So without further ado, let’s delve into this exciting topic…

Most of us have heard of trusts, yet we have difficulty in explaining exactly what they are.  We are familiar with the stereotypical term “Trust Fund Baby”, which generally has a negative connotation, but let’s admit it, we all wish we were one of those lucky few.  The reality is, though, not only the rich benefit from the use of trusts, if used properly they may be of value to many of us.

But, before we talk about types of Trusts and their uses, let’s first define what a Trust is and how they came into being:

Definition A Trust is a separate entity in which ownership of assets (i.e. money, property, art, jewelry, etc.) is transferred into by a Trustor (or grantor), to be managed by a Trustee, for the benefit of a third party, a Beneficiary.

Origin – The origin of trusts dates back to the days of the Roman Empire, around 800 A.D.  When faced with deployment, soldiers would transfer land ownership to a trusted friend to ensure for the financial support of their families for the time were deployed[1].  Hence, the soldier was what we now term the Trustor, the friend – the Trustee, and the family – the Beneficiary.  This practice became a part of English law when landowners left England to fight in the Crusades during the 12th century[2].  It was later adopted in America by the early colonists.

Okay, now that you know the definition and origins of Trusts – imagine how much fun you will have at your next cocktail party dazzling your friends with your new-found knowledge.  (See disclaimer below)

I know I’ve left you hanging on for more, and you have no idea if you need a trust or not, so be sure to look for my next post where I will touch upon the various types and practical uses of Trusts to see if one is right for you.

If you have any questions regarding trust, give me a call, John McCarthy at 570.826.1801 ext. 309, or call your current wealth advisor at Jacobi Capital.


Disclaimer:  Warning – “trust talk” may unintentionally be luring and attractive.  Know the party with whom you are speaking before engaging in such a conversation.

Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. To determine what is appropriate for you, consult a qualified professional.