Trusts FAQs

The estate planning attorneys at the Law Offices of Reuben S.F. Wong present the following answers to frequently asked questions encountered by the firm's lawyers in their Honolulu trusts and estates practice.  If you have further questions or wish to speak with an attorney regarding the creation of a will, trust, or other estate planning document, contact the Law Offices of Reuben S.F. Wong to speak with an attorney.

Q.  Why do I need a trust?
A.  The main benefit of a trust is that it allows you to pass your estate on to your heirs without the need for probate.  A trust allows you to manage and control your assets for your benefit during your lifetime, and after your death the trust assets can continue to be managed and controlled according to your wishes for the benefit of your named beneficiaries, or distributed to your beneficiaries outright depending on what you specify in your trust.

A trust also provides a plan for your subsequent incapacity; in the event you are no longer able to manage your financial affairs, the successor trustee named in your trust will take over the management of the trust assets.

A trust may also be used to maximize wealth transfer to your heirs while minimizing estate, gift, income and generation-skipping transfer tax consequences.

Q.  Do I give up control over the assets in a trust?
A.  No.  The creation of a trust vests legal title of the assets in the named trustee, and equitable title in the named beneficiaries, with the primary purpose of avoiding probate.  The trustee manages the trusts assets according to your instructions, which may be as detailed as you desire.  If you wish, you can name yourself as the trustee, or even as the beneficiary of a trust that you create.  If you have established a revocable living trust, you are able to change or revoke the terms of the trust during your lifetime.

Q.  Why is it so desirable to avoid probate?
A.  Depending upon the size and complexity of the estate, the probate process can be very expensive and time-consuming to complete.  Even a relatively small estate can take several months or more than a year to clear probate.  Also, a will that is offered for probate is a matter of public record, and is therefore accessible to anyone who wishes to request a copy.  Many people prefer using a trust as their primary estate planning document in order to keep the nature and the size of their estate, as well as information regarding who their beneficiaries are and the amount each beneficiary received, private.