Trust Basics
When creating a trust, one of the first steps is choosing the trust's name. This decision, while seemingly simple, can have a variety of implications, both practical and personal. A trust name serves as a legal identifier for the trust in transactions and on legal documents, but it can also reflect personal or family significance. Here are some different naming options and why you might choose one over another:
1. Personal Name Trust
Example: "John and Mary Smith Living Trust"
Why Choose This?: This is the most straightforward option. Using your name provides immediate clarity to family members and institutions handling your estate. It’s easy to remember and directly identifies the trust with its grantors.
Considerations: While simple and clear, using your personal name can reduce privacy. For those who want a more anonymous structure, a personal name trust might not offer enough discretion.
2. Family or Legacy Name Trust
Example: "Smith Family Trust"
Why Choose This?: Naming your trust after your family emphasizes that the trust is intended to support not just you but future generations. It reflects a broader purpose and may give the trust a sense of continuity or legacy.
Considerations: This option is especially useful for trusts intended to benefit multiple generations. However, it may lack specificity if there are multiple family members with similar trusts.
3. Creative or Meaningful Name
Example: "Aberdeen 15 Trust" (named after a wedding venue and year)
Why Choose This?: A more creative or meaningful name can offer a layer of privacy while also reflecting something special to you, such as an important event, place, or symbol in your life. It adds a personal touch without immediately linking back to you in public records.
Considerations: A creative name offers privacy, but it may require extra explanation for family members or financial institutions unfamiliar with the choice.
4. Anonymous or Discreet Name
Example: "NJC Trust" (initials or other anonymized format)
Why Choose This?: Using initials or a generic name offers more privacy. It can protect the trust from being easily identified with you in public searches or on legal documents.
Considerations: While this option offers more discretion, it may confuse beneficiaries or financial institutions that need clarity on the trust’s purpose and ownership.
Choose Your Trust's Name
What name would you like to give your trust?
Consider the different naming strategies above. Here are a few prompts to help you think through your choice:
Do you want your trust name to reflect your identity, your family, or something meaningful to you?
Are you concerned about privacy and prefer a more discreet name?
Is this trust intended to last for multiple generations?