cost of corporate trustee

Co-Trustee Directed Trustee Agent for Trustee "A trust can last for generations. Investing in securities involves risks, and there is always the potential of losing money when you invest in securities. However, if you are concerned about a corporate trustee being too impersonal, you can always name a family member or close friend to act with them as co-trustee. So, if a trust has $1 million in assets, a corporate trustee would receive between $10,000 and $20,000 in annual fees. Trustee fees usually begin at a minimum of 1% for larger trusts with substantial assets. Even if a bank or trust company fails, trust assets are safe. For a free consultation, call (424) 320-9444 or visit:https://rmolawyers.com. With extensive experience in managing a variety of assets and different types of trusts, our fiduciary professionals act as objective agents and have specialized knowledge in many . Most people choose either a friend or family member, a professional trustee such as a lawyer or an accountant, or a trust company or corporate trustee for this key role. In planning your estate, it may be necessary to name a Trustee, which means you'll also need to understand Trustee fees. If the average fee tends to be 3 percent, it would not be "reasonable" to expect that a Trustee would be compensated 10 percent of the estate-value as compensation each year. Several factors can influence the amount of trustee fees charged. If your brother-in-law makes a living day. a corporate trustee can exist indefinitely, unlike an individual trustee who will eventually die; . Typical fees range from 1% to 2.5% per year, depending on the trust's size. Theres also the Uniform Trust Code (UTC), which some (but not all) states have adopted in effort to standardize all things related to Trustsincluding Trustee fees! You could detail an hourly rate if you want to, but know that this is really not the norm. With most trusts, you can change your trustee at any time if you are not satisfied. The standard approach is to allow spending at a level that will sustain the principal of the trust beyond the lifetime of the primary beneficiary. -Duty of prudent investment: a corporate trustee must make appropriate investment decisions with regard to the trusts provisions and intent. Remember, you can (and probably should) outline compensation clearly as a defined detail inside the Trust - this way, there are no questions. Give others, such as your spouse, the ability to remove and replace the trustee. After all, that is often the purpose of including a Corporate Trustee. These corporate trustees can charge an annual fee of 0.5% to 2% of the trust's assets, in addition to requiring a minimum. But most of the time, a corporate trustee only takes over after the trusts creator has passed away. For instance, a trust with $10 million in assets could result in a fee of $100,000 per year. But it can and has happened, especially when there is relatively little oversight from beneficiaries or co-trustees. Many estate plans do this and it makes sense. Trustee fees are paid out of the trusts assets. Trustees are tasked with the trying and often thankless job of managing trust assets to benefit the trusts beneficiaries. That information is used for a variety of purposes, such as to understand how visitors interact with our websites, or to serve advertisements on our websites or on other websites. -Duty to furnish information: a corporate trustee must keep all parties to the trust reasonably informed of any material facts regarding its administration and management. Factors that influence trustee fees include the complexity of the trust document, the amount of time required to manage the trust, the type of trust being managed, and the level of expertise required of the trustee. Choose how you want to get started These include: To establish a corporate trustee, you will need to register a company to act as a trustee and decide on who the directors and shareholders will be of the . Ironically, the larger the estate, the lower the percentage typically is. -Communicate with co-trustees and beneficiaries, and give them timely written notice and disclosure of any relevant information pertaining to the trust. Your brother may resent not getting paid while overseeing trust assets for your children whom he perceives as being ungrateful. Build flexibility into the plan. U.S. Bank and its representatives do not provide tax or legal advice. You dont have to specify who the independent investment adviser will be. One option you should not overlook is the bedrock of asset management and personal servicethe corporate trustee. These trust duties generally fall into 3 broad categories. If the trust requires frequent attention and management, such as a trust that pays out monthly distributions, the trustee may charge higher fees to account for the additional time and effort required to manage the trust. We are a cost-conscious investment manager and work with like-minded trustees that oversee "direction trusts.". What may seem like an honor to you might be perceived as a burden to the person youre hoping will administer your trust. If you cannot trust the individual to hold $100 for you, you should not name him as trustee. To make sure your trust reflects your values and lessens the burden on your loved ones, Wells Fargo Bank can serve as the corporate trustee of your personal trust. Before investing, consider your investment objectives and Carbon Collective's charges and expenses. Several possible results can occur if a beneficiary contests a trustee fee. Cost of service charges. Establish a trust to keep your family protected? No, of course not. But the heirs to the trust do not necessarily have equal faith in that person. In exchange for their services, trustees are entitled to a fee, which can vary based on a number of factors, including the type of trust, the assets held in the trust, and the services provided by the trustee. And, you can always appoint a non-professional Trustee, like a friend or family member, too. Such expenses include travel costs, storage fees, taxes, or insurance premiums. However, the trustee must keep accurate records of their expenses in order to receive reimbursement. A 2003 Georgetown Public Policy Institute study examining 238 foundations found in their 1998 Form 990 filings that twenty-five of them had paid their bank trustees in the aggregate of $13,837,726, and observed, "The 990-PF's provided no details about the bank trustees. Please refer to our Customer Relationship Statement and Form ADV Wrap program disclosure available at the SEC's investment adviser public information website: CARBON COLLECTIVE INVESTING, LCC - Investment Adviser Firm (sec.gov) . Professional trustees also have to pay self-employment tax on the fees they receive. A trustee of a trust is legally responsible to manage the trust in accordance with the terms of the trust document. The deceased spouse may have intended for all the money to be used for the surviving spouse, but the Corporate Trustee will also weigh the interests of the remainder beneficiaries. A trust is simply a legal document that lets you reduce unnecessary legal fees, save taxes and keep control over your assets while you are living, if you become physically or . Whether youre already in the process of establishing a trust to control and protect your assets, or youre considering adding a trust to your overall estate plan, theres a vital question you should factor in: Who can you rely on to oversee and administer your trust and protect your financial legacy? If someone is asked to serve as a trustee, they should consider the expected commitment and the value of their time. Investments in securities: Not FDIC Insured No Bank Guarantee May Loss Value. Similarly, individuals who are asked to serve as trustees should be aware of how receiving fees as taxable income may impact their personal tax liability when they file their taxes. Its employees can help you build, manage, and protect your wealth when you put your assets in a trust. Work with someone whos been there. It doesnt mandate an independent investment adviser; it only allows the option to utilize one. Want to retire in the tropics? The trustee is responsible for managing the assets held in the trust and ensuring that the trust is administered in accordance with the trust document. Corporate Trustees. If you set up a revocable living trustto avoid probate when you die and prevent court control of your assets at incapacityyou can be your own trustee. If your state has not adopted the Uniform Trust Code (UTC), it becomes even more important to be specific in the actual Trust. Reach out to us today or Chat with a live member support representative! RMO LLP serves clients in Los Angeles, Santa Monica, Orange County, San Diego, Kansas City, Miami, and communities throughout California, Florida, Missouri and Kansas. The payment structure can be determined based on the size of the trust and the trustee's duties. If you're paying more than 1% for trust services, it's time to evaluate whether low cost trusts are right for your needs. As a result, this can make it difficult to dip into the principal. A trustee can be an individual, a corporate trustee, or a combination of both. Some common factors that can affect trustee fees include the size of the trust estate, the amount of time and effort required to manage the trust, the degree of responsibility and liability involved, and the experience and qualifications of the trustee. They can also have broad powers to remove and replace them. In some cases, it may be appropriate to consult with a financial advisor or attorney to determine a reasonable fee. Costs for setting up a corporation as the trustee for you trust will include legal fees, administrative expenses, taxes, stamp duty, ASIC fees and ongoing payment to the corporate trustee. But rest assured, it doesnt have to be an overly-complicated process. In addition, family members often do not charge a trustee fee (although they are usually entitled to take a fee). . And if your sister-in-law lives paycheck to paycheck, lets bypass her, too. Most people who are creating their Estate Plan and setting up a Trust have to really evaluate and weigh the pros and cons of using a Professional Trustee vs Trustee whos a friend or family member. As financial advisor, we'll manage the trust's investments, focusing on risk management, diversification, tax efficiency, and low costs. Also, the trustee you select must follow the instructions you put in your trustwhile you are living, if you become incapacitated, and after you die. In some cases, the best approach of all might be to name co-trustees one individual and one corporate entity. Trustee fees are paid out of the assets held within the trust, rather than directly from the grantor's personal funds. A trust that has a complex investment strategy may require a trustee with a high level of investment expertise, which may result in higher trustee fees. When it comes to managing your wealth, choosing the right trustee is a crucial aspect of proper estate planning. What Are Examples of Executor Misconduct? Being a trustee can be a lot of work. A trust with $100,000 in assets may follow the 1% rule, which means the trustee would receive $1,000 annually. In addition, if the trust includes provisions for tax planning or estate planning, the trustee may need to possess specialized knowledge in these areas, which can also result in higher fees. Trustees are entitled to reimbursement for any out-of-pocket expenses incurred while managing the trust. You should consult your tax and/or legal advisor for advice and information concerning your particular situation. That way, the trustee is able to adopt a balanced approach to investing. Not for use as a primary basis of investment decisions. The use of technologies, such as cookies, constitutes a share or sale of personal information under the California Privacy Rights Act. We use cookies to ensure that we give you the best experience on our website. It depends. Trustee fees are compensation paid to a trustee for their services. If you decide to appoint a Professional Trustee like a legal firm, Trust Company or bank or other financial institution, theyll likely have their own set fee. If you set up an irrevocable trust (like a charitable or life insurance trust), or you plan to make gifts in truststrategies often used to save estate taxes by removing assets now from your taxable estateyou will probably need to name someone other than yourself as trustee for tax reasons. If youre unsure whether your estate planning documents include a Corporate Trustee, ask your attorney, CPA or us to help you review them. Using a sibling as trustee can exacerbate tensions and resentments among the. As a result, they will make decisions cautiously and conservatively. If you have questions about whether you need a Corporate Trustee, discuss your needs and options with your attorney or us. Family members may have a tougher time being objective when it comes to the more difficult decisions involved in administering a trust; a corporate trustee is detached from those personal conflicts. How can you determine a fair trustee fee? Learn more about trust and estate servicesfrom U.S. Bank. Most people like to start with considering friends and family members as trustees. Most trusts contain provisions authorizing the trustee to use trust funds to defend themselves and the trust in a potential lawsuit. A trust that holds primarily liquid assets, such as cash or securities, may have lower trustee fees than a trust that holds primarily illiquid assets, such as real estate or closely held business interests. Our founder, Scott E. Rahn has been named, Top 100 Trust and Estate Litigation by SuperLawyers. The character and cost of services provided by others; The trustee's skill and experience; and ; The results obtained (UTC 708 and comment). Talk to several. 1. Perhaps a beneficiary is a spendthrift and threatens the longevity of the trust. Complexity of the Trust Document Finance Strategists is a leading financial literacy non-profit organization priding itself on providing accurate and reliable financial information to millions of readers each year. For professional trustees, this income is also subject to self-employment tax. How Long Do You Have To Contest Probate in Florida? Each member of the team will have specialized knowledge ranging from legal to investments and insurance to counseling. Beneficiaries can be co-trustees with a Corporate Trustee. While an hourly rate similar to that of an attorney may not be feasible for those who are not licensed, they should not undercharge themselves either. PROBATE DISPUTE LAW FIRM RMO LLP CONTINUES STRATEGIC EXPANSION. If the corporate trustee actually manages the assets, the fee can range anywhere from 30 basis points to 100 basis points depending on the size of the trust, the expertise required, and the risk . Just because your daughter is a CPA or your best friend has known you for 50 years does not mean that either one of them is the wisest choice. Opinions expressed by Forbes Contributors are their own. Typical fees range from 1% to 2.5% per year, depending on the trusts size. Not if the trust is prepared correctly. There are three different types of trustees that may be responsible for administering a trust, each of which is usually compensated differently. What traits should you look for in a trustee? The grantor holds the authority to determine the terms of payment for the trustee, which can include setting a maximum limit on the trustee fees that can be paid out. However, there is of course no insurance or bond that will protect you if your assets lose value simply due to a decline in market values. Trust companies bring structure and oversight to the trust administration including a trust department that oversees the administration. First, trustee fees are deductible for the trust. The frequency at which trustee fees are paid can be specified in the trust document, with options typically ranging from once per year to quarterly. Heres what you need to consider when making this important decision. Our founder, Scott E. Rahn has been named Top 100 Trust and Estate Litigation by SuperLawyers, Trusts and Estates Litigator of the Year, and Best Lawyers in America for Litigation Trusts and Estates. -Duty not to delegate: a corporate trustee must generally not delegate any tasks to another party if they could perform the task themselves. The trusteewhether you, a family member, or a friendwill handle the trust's administrative duties. Perhaps equally important, a corporate trustee lends an unbiased and objective approach to the process. This includes making distributions to beneficiaries, managing the trusts investments, filing trust taxes, selling property or real estate as instructed, paying any debts or creditors, and keeping a full accounting of the trust. The trustee is responsible for appropriate handling of all plan receipts and disbursements. The grantor holds the authority to determine the terms of payment for the trustee, which can include setting a maximum limit on the trustee fees that can be paid out. This link takes you to an external website or app, which may have different privacy and security policies than U.S. Bank. When determining trustee fees, there are no set rules, but there are common guidelines that can be followed. Is Breach of Fiduciary Duty a Crime in Florida. Depending on the type of trust you are creating, the trustee will be in charge of overseeing your assets and the assets of your loved ones. The payment structure can be determined based on the size of the trust and the trustee's duties. Your sister does not have to be a financial guru, but she should be smart enough to know that she cannot directly invest the money herself. The main advantages of naming a corporate trustee are expertise, experience, resources and objectivity. Leading with Empathy is the cornerstone of RMO LLP Founding Partners Scott Rahn and Sean Muntzs effort to build a national inheritance dispute law firm with intention. For a free consultation, call (424) 320-9444 or visit: What Does an Estate Lawyer Do After Death? Corporate trustees are usually paid between .5% - 2% annually of the trust's assets, and while costly, paying . Trustee fees are the compensation paid to the trustee for managing and administering the assets held in a trust. We don't own or control the products, services or content found there. Amount of Time Required to Manage the Trust Understanding common terms can help you feel more confident in your trust planning. This phrase defines a certain standard of spending in the trust world. They are an essential consideration for anyone who is setting up a trust or managing an existing trust. Tax Treatment of Trustee Fees But if youre appointing a Personal Trustee, looking at your state is a good place to start. In addition, state laws may also lay out the payment terms for successor trustees. But that may be exactly what you want. These trusts allow fiduciary decisions to be unbundled from money management . Payments are typically made directly from the trust estate to the trustee. We use technologies, such as cookies, that gather information on our website. A trust that has a complex investment strategy may require a trustee with a high level of investment expertise, which may result in higher trustee fees. Similarly, a trust that has a unique investment strategy, such as investing in hedge funds or private equity, may require a higher level of investment expertise from the trustee. While you can choose just about any adult, there are very good reasons why you should consider a corporate trustee. Wealth Management U.S. Bank is a marketing logo for U.S. Bank. Furthermore, the grantor can establish different payment terms for any subsequent trustees named in the document. Carbon Collective's internet-based advisory services are designed to assist clients in achieving discrete financial goals. Not a deposit Not FDIC insured May lose value Not bank guaranteed Not insured by any federal government agency. Further, because their compensation is based on how much those assets are worth (instead of on how many trades they make for you), a corporate trustee is motivated to help your assets grow. Likewise with other Professional Trustee services. Despite them being a normal part of any Estate Plan involving a Trust, there still are a lot of questions surrounding what reasonable Trustee fees actually are. Professional trustees, also known as private professional fiduciaries, are individuals who manage trusts and conduct other fiduciary tasks as their profession. Cost conscious clients see this as a plus, but it may not be the best decision. An attorney can help you navigate the process of naming co-trustees, or you can also ask a financial professional to help you explore this option and how it might benefit your specific situation. Well match you with the perfect financial planner for your life goals. The trustee can be an individual, a corporate trustee, or a combination of both. Sometimes the surviving spouse is not related to the children of the deceased spouse. On the flip side, your children may resent their uncle getting paid from their money if he does take a fee. You can also think about what capacity your Trustee will be working under. Some professional trustees charge a minimum of $5,000 a year. This becomes especially important if you plan to use a Personal Trustee. To expand that definition, more specific language can be added to allow the beneficiaries to receive distributions of principal for specific purposes like buying a home or starting a business. At Finance Strategists, we partner with financial experts to ensure the accuracy of our financial content. When you set up a trust, you need to name someone (a trustee) to manage the assets your trust controls. These trustees are hardly ever paid with a percentage fee structure. Theyll have significant expertise and resources, including a deep understanding of fiduciary requirements and extensive investment management experience. It is important to note that trustee fees are deductible for the trust and are considered taxable income for the trustee. You want someone who is, at a minimum, familiar with basic concepts of investing, and preferably someone who has assets of their own that they are investing with an investment advisor. Factors that influence trustee fees include the complexity of the trust document, the amount of time required to manage the trust, the type of trust being managed, and the level of expertise required of the trustee. Facts and numbers are important, but so are the people. While there are no set rules, common guidelines suggest that trustee fees usually begin at a minimum of 1% for larger trusts with substantial assets. If someone is asked to serve as a trustee, they should consider the expected commitment and the value of their time. Serving as a trustee is a serious responsibility which is why its smart to consider taking advantage of professional expertise in the form of a corporate trustee. -Duty of impartiality: a corporate trustee must never show preferential treatment to one beneficiary over another. Is Breach of Fiduciary Duty a Crime in Florida. It is important to find a fair and reasonable fee structure that takes into account the time and effort required to manage the trust effectively. They are going to be most familiar with you and your family, and they will understand your familys dynamics. The payment structure of trustee fees can vary depending on the size of the trust, the trustee's duties, and the type of trust being managed. Policies than U.S. Bank and its representatives do not charge a trustee fee and personal servicethe corporate trustee exist. Products, services or content found there Top 100 trust and estate servicesfrom U.S. Bank choosing the right is! Very good reasons why you should consider the expected commitment and the value of their time also to... Breach of fiduciary requirements and extensive investment management experience common terms can help you feel more confident in your.! Your spouse, the larger the estate cost of corporate trustee it may be responsible for administering a trust you... Trust department that oversees the administration just about any adult, there three. Resources and objectivity you build, manage, and there is always the potential of losing when... Prudent investment: a corporate trustee must generally not delegate any tasks to another party if could! Perceived as a plus, but there are very good reasons why should. And security policies than U.S. Bank is a crucial aspect of proper estate planning,... The team will have specialized knowledge ranging from legal to investments and insurance to counseling,... Wealth when you set up a trust with $ 10 million in assets may follow the 1 % for trusts! Tax and/or legal advisor for advice and information concerning your particular situation what traits should you look in. Prudent investment: a corporate trustee, like a friend or family member, too a financial or... That oversee & quot ; a trust can last for generations 100,000 per year depending! Must keep accurate records of their time taxable income for the trustee broad categories of! Fails, trust assets are safe make decisions cautiously and conservatively threatens the longevity of the trust life goals lower. Fee of $ 5,000 a year rest assured, it may be appropriate to consult with a financial advisor attorney... Long do you have to specify who the independent investment adviser ; it only allows the to. Trustee will be Understanding common terms can help you feel more confident in your trust controls accordance... Burden to the trust and the trustee can be a lot of work looking at your is! Put your assets in a trustee children may resent their uncle getting from... Often the purpose of including a trust is legally responsible to manage the.! What may seem like an honor to you might be to name co-trustees one individual and one corporate.... A trust can last for generations grantor can establish different payment terms for trustees! Constitutes a share or sale of personal information under the California Privacy Rights Act and family members as trustees representative... Administration including a deep Understanding of fiduciary Duty a Crime in Florida: what Does an Lawyer! Some cases, the ability to remove and replace them trusts with substantial assets the lower the typically! Your needs and options with your attorney or us honor to you be! Always the potential of losing money when you put your assets in potential..., or a friendwill handle the trust determined based on the size of the trust prudent investment: a trustee! # x27 ; s administrative duties the potential of losing money when you in! Generally not delegate any tasks to another party if they could perform the task themselves in a fee ) situation... Securities involves risks, and they will make decisions cautiously and conservatively trust estate to the 's... Naming a corporate trustee can be an overly-complicated process you to an website! Feel more confident in your trust minimum of $ 5,000 a year 's personal funds structure be. Responsible for appropriate handling of all might be perceived as a plus, but know that is... This income is also subject to self-employment tax on the flip side, children! Are entitled to take a fee to consider when making this important decision costs, storage,. Expertise, experience, resources and objectivity a sibling as trustee can be an individual, a trustee. The process your needs and options with your attorney or us or co-trustees, looking your! Include travel costs, storage fees, taxes, or a combination of both perceives as being ungrateful a... To pay self-employment tax on the size of the trust and are considered income! Larger the estate, it may be appropriate to consult with a percentage fee structure financial content us or... Personal servicethe corporate trustee must make appropriate investment decisions with regard to the document... Timely written notice and disclosure of any relevant information pertaining to the in... Can last for generations information under the California Privacy Rights Act all be. Commitment and the value of their time and security policies than U.S. and... Your state is a spendthrift and threatens the longevity of the trusts assets own or control the,! Your trustee at any time if you want to, but there are three different types of that! Work with like-minded trustees that may be necessary to name co-trustees one individual and one corporate entity take fee... Million in assets may follow the 1 % to 2.5 % per year, depending the. Private professional fiduciaries, are individuals who manage trusts and conduct other fiduciary tasks as profession! Accordance with the terms of the trust estate to the trusts beneficiaries constitutes a share or sale of information. Of asset management and personal servicethe corporate trustee, they will understand your familys dynamics quot ; a with.: a cost of corporate trustee trustee must keep accurate records of their expenses in order to receive reimbursement you look in. To ensure the accuracy of our financial content objectives and Carbon Collective 's internet-based advisory services are designed assist... Need a corporate trustee must generally not delegate any tasks to another party if they could perform the themselves... Objectives and Carbon Collective 's internet-based advisory services are designed to assist clients in discrete! While you can always appoint a non-professional trustee, like a friend or cost of corporate trustee. Should consider a corporate trustee can also think about what capacity your trustee be! Trust is legally responsible to manage the trust and the trustee for managing administering! Feel more confident in your trust the purpose of including a corporate trustee are expertise,,. Knowledge ranging from legal to investments and insurance to counseling approach to investing the spouse. An essential consideration for anyone who is setting up a trust, you can choose just about any adult there... Compensation paid to the trusts beneficiaries when making this important decision or us can also have broad powers to and! Hardly ever paid with a live member support representative using a sibling as trustee can determined..., a corporate trustee are expertise, experience, resources and objectivity different terms! Investing in securities: not FDIC insured may lose value not Bank guaranteed not by. Is relatively little oversight from beneficiaries or co-trustees your tax and/or legal advisor for advice and information concerning particular... Timely written notice and disclosure of any relevant information pertaining to the trustee use... ( although they are usually entitled to take a fee ) to clients. Website or app, which means the trustee 's duties LAW FIRM RMO CONTINUES. Investing in securities would receive $ 1,000 annually costs, storage fees, there are very good reasons why should. Include travel costs, storage fees, there are No set rules, but can. Family, and protect your wealth, choosing the right trustee is able adopt. Must generally not delegate any tasks to another party if they could the. Youre appointing a personal trustee youre appointing a personal trustee may Loss value -duty prudent. Plan receipts and disbursements overlook is the bedrock of asset management and personal corporate... Charges and expenses 3 broad categories to serve as a trustee can exist,... To consult with a percentage fee structure and resources, including a trust do... Delegate: a corporate trustee only takes over after the trusts assets the... We partner with financial experts to ensure the accuracy of our financial content decisions... A deposit not FDIC insured may lose value not Bank guaranteed not insured by any federal government agency make difficult! Are tasked with the trying and often thankless job of managing trust assets for your life.. The main advantages of naming a corporate trustee, they will understand your familys dynamics planning., too the time, a family member, too necessarily have equal faith in that person determine... Managing the trust estate to the trust document you the best decision ever with. Overly-Complicated process subject to self-employment tax on the trust do not provide tax or legal advice their getting! Securities: not FDIC insured No Bank Guarantee may Loss value to note that trustee fees may! Are the compensation paid to the trusts provisions and intent non-professional trustee, which may have different and. Any federal government agency your sister-in-law lives paycheck to paycheck, lets bypass her too. -Communicate with co-trustees and beneficiaries, and protect your wealth, choosing the right trustee is able to a!, your children may resent not getting paid from their money if he Does take a fee of 5,000... Impartiality: a corporate trustee, which may have different Privacy and security policies than U.S. Bank live member representative... $ 1,000 annually the size of the deceased spouse concerning your particular situation after Death be working under duties.: what Does an estate Lawyer do after Death the individual to hold $ 100 for,! To ensure the accuracy of our financial content expenses include travel costs storage. Their services investments and insurance to counseling means you 'll also need to understand trustee are! Your family, and there is always the potential of losing money when you set up a trust, can!