Considerations for Keeping Assets in Trusts

vs. Outright Ownership

  • Trustee Services
  • Wealth Planning

Considerations for Keeping Assets in Trusts vs. Outright Ownership

There are many instances in which one may need to make the decision to keep assets in trust or retain ownership outright in one’s personal name. One of the most common occurrences is when a trust ends due to a triggering event, such as the expiration of a term of years or a beneficiary reaching a certain age.

BenefitsComplete control over assets. Potential protection from creditors (if trust cannot be revoked by you). Consideration should be made to the relevant law governing a trust and whether creditor protection is statutorily provided for. | Allows insulation from those seeking gifts or loans. For example, when approached you can respond, “Sorry, I don’t have access to that kind of money.” | If a trust is terminating and gives the option for assets to remain in further trust, the management of assets can continue in same manner as they were prior to termination.
BurdensFacilitates pressure from third parties for gifts, loans, and contributions (personal or charitable). | Risks from creditors/litigious seekers of deep pockets. Of note, assets in one’s personal name may become marital or community property. | Need to determine how to have administration of assets taken care of/managed. Unless trust is fully revocable (which is akin to outright ownership and does not help with creditor protection or insulation to outside soliciting parties) one does not have unfettered access to the assets.

To learn more, please contact your Rockefeller Private Advisor.

Rockefeller Capital Management is the marketing name of Rockefeller Capital Management L.P. and its affiliates. Investment advisory, asset management and fiduciary activities are performed by the following affiliates of Rockefeller Capital Management: Rockefeller & Co. LLC, Rockefeller Trust Company, N.A., The Rockefeller Trust Company (Delaware) and Rockefeller Financial LLC, as the case may be. Rockefeller Asset Management is a division of Rockefeller & Co. LLC. Rockefeller Financial LLC is a broker-dealer and investment adviser dually registered with the U.S. Securities and Exchange Commission (SEC). Member Financial Industry Regulatory Authority (FINRA); Securities Investor Protection Corporation (SIPC). The registrations and memberships above in no way imply that the SEC has endorsed the entities, products or services discussed herein. Additional information is available upon request.

© 2023 Rockefeller Capital Management. All rights reserved. Does not apply to sourced material. Products and services may be provided by various affiliates of Rockefeller Capital Management. RCMID-1428079438-3780.