What is a survivor trust?

A survivor trust is a type of trust that is created to protect assets and provide income for a surviving spouse or partner. It is typically established by married couples who want to ensure that their assets are transferred to their surviving partner without going through probate.

The survivor trust is designed to provide financial security to the surviving spouse by holding assets in trust and distributing income and principal as needed. The trust may also have specific provisions for the care of a disabled or special needs beneficiary.

The survivor trust’s assets are managed by a trustee, who is responsible for investing and distributing the assets in accordance with the trust agreement. The trustee may also be authorized to make decisions regarding the trust’s assets if the surviving spouse becomes incapacitated.

Survivor trusts can be revocable or irrevocable. A revocable survivor trust can be changed or terminated by the grantor(s) at any time during their lifetime, while an irrevocable survivor trust cannot be amended or revoked.

Overall, the survivor trust is a useful estate planning tool that provides asset protection and income for a surviving spouse or partner, while also minimizing estate taxes and avoiding probate.