If you want to be absolutely certain your loved ones will be cared for, and in the ways that you deem appropriate, begin your estate planning now. You’ve earned your assets over a lifetime of hard work. Intelligent planning, based on your unique circumstances, enables you to legally codify your estate wishes and create a mechanism to see that they are heeded when the time comes. Depending on the size and nature of your various assets, conscientious estate planning can supply you with welcome peace of mind.

Trust Basics. As part of overall estate planning, you may choose to establish Trusts. A Trust creates a recognized legal entity that holds title of an asset or assets—such as property or money—for the future benefit of another person or several people. When you create a Trust, you are deemed the Creator or Trustor. The person—or an entity like a bank or law firm—who is empowered to manage the Trust’s assets is the Trustee. The intended and eventual receiver of the Trust is known as the Beneficiary.

Trustees. Depending on the exact nature of a Trust, Trustees are generally afforded some leeway in their administration. Trustees actually hold legal title to the Trusts which they manage, but this does not amount to full ownership. Trustees must scrupulously abide by the terms delineated in the original Trust agreements; they cannot run off with the Trust’s assets, or use the assets for personal enrichment. Trustees can only use the assets in the Trust agreements for the betterment of the designated Beneficiaries.

Why a Trust? There are numerous reasons why you might want to set up a Trust or a series of Trusts.

Foremost is avoiding the probate process. That is, when you die, the Beneficiaries of the Trusts receive what is due them—immediately—and no court has a say in the matter. Avoiding probate not only expedites the dispensation of your estate’s assets, but takes, in many instances, possible estate and gift taxes off the table. For example: If you had a Will stating only that your property was to be divided up equally among your surviving children, the IRS and state government would take what they were legally entitled to before any of your beneficiaries saw a dime. A legal Trust often legally circumvents taxes that would otherwise be owed.

Another advantage of setting up Trusts is preserving your family’s privacy. Probated matters become public record. But no court approval is needed for a Trust to become a legally recognized entity; the paperwork remains more private. A prime example of a simple Trust is a bank account in which you are both the Trustor and Trustee. You designate a beneficiary and put his or her name—“In Trust for”—on the account. During your lifetime, you maintain absolute control of the account. It passes to the stated beneficiary only upon your death—immediately and with no probate involvement.

Some Trusts are established for minors who cannot yet manage money or other assets. Some Trusts, too, are created for adults who are not believed responsible enough to receive an inheritance outright. For instance, a Trust agreement could contain stipulations that maintain a Trustee’s management and administration of the asset in perpetuity—for the life of the Beneficiary or until the asset is exhausted. Other Trusts contain provisos about exactly when the Beneficiaries receive what is in trust for them—or what they must do to receive it.

The prudent path is to see an estate planner as early as possible to help determine your next steps. You may be able to set up a very simple Trust yourself, using specialized software. More complicated estates may warrant assistance from a CPA or attorney. Many of us put off these estate planning basics, since it’s often a subject we’d rather not think about, but a little time invested now will ensure your need and decisions are respected later—efficiently, privately, and cost-effectively.