For a generation used to managing its own investments in 401Ks and IRAs, these more flexible trusts should become more attractive financial tools. It used to be that the person named by a family member to oversee a trust had to assume this responsibility whether or not he or she felt capable. It could be quite a burden, especially for someone with little financial expertise or interest. This new law allows a designated trustee to delegate investment decisions to skilled investment professionals. For smaller trusts, investing through mutual funds rather than individual securities can be a more cost effective way to manage assets.
Trusts can be an important part of an estate plan.
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