Trusts are some of the most powerful and advanced estate planning tools used for leaving assets behind to your heirs while also having some level of control over their access to those assets. In some cases, you might inform your beneficiaries that you have created a trust for their benefit, but there are situations in which this does not work and in which a quiet trust created by an estate planning lawyer may be more helpful.
A quiet trust is one that has many similar components to other trusts, but there is little to no notice given to beneficiaries. A person called a grantor puts assets inside a trust managed by another individual known as the trustee. The trust document may determine how income will be transferred to beneficiaries. Many people use quiet trusts for their grandchildren or children because they do not want these heirs relying on these potential future resources and failing to pursue educational or career goals.
The purpose behind this is often to help those minor children develop good financial habits and create their own wealth. In other circumstances, you might choose to create a quiet trust as a way to get more privacy. A quiet trust ensures that only a minimal number of people know about the trust altogether, which can help prevent heirs from talking about how much they may get, being taken advantage of or misusing this information. If you intend to structure a quiet trust, make sure you work with a knowledgeable estate planning attorney to do so.
New Hampshire is one of a handful of states that allow a silent or quiet trust. If you’re thinking about setting one up, it’s best to do so with the guidance of an experienced and dedicated lawyer at your side.