What Are the Benefits of Having a Trust?
July 8, 2025
One of the most powerful tools available in estate planning is the trust. Whether you're looking to support your children, shield assets, or avoid probate, trusts offer a level of flexibility and control that goes far beyond a basic will.
Under Wisconsin estate law, a trust is a legal arrangement where one party (the trustee) holds property for the benefit of another (the beneficiary). Trusts can be customized to reflect your intentions—during your lifetime and after you're gone.
At Lewis & Van Sickle, LLC, we help individuals and families across Wisconsin understand how to protect what they’ve built and make thoughtful decisions about their legacies.
We’ve seen firsthand how trusts can solve problems before they arise and offer peace of mind that your wishes will be honored. That said, here's what some of the key benefits are to having a trust.
Advantages of Establishing a Trust in Wisconsin
Trusts offer benefits that are both practical and long-lasting. Whether you’re trying to avoid probate, reduce taxes, or control how and when assets are distributed, trusts provide a level of security that’s hard to match.
Avoiding probate: Trusts allow assets to be transferred to beneficiaries without going through probate court. This saves time, reduces legal fees, and keeps your financial affairs private.
Privacy: Wills become public record during probate. Trusts don't. Your distributions and beneficiaries remain confidential.
Control over asset distribution: You can control when and how beneficiaries receive their inheritance—whether it’s based on age, life milestones, or ongoing need. This is especially helpful for minor children or those who are financially inexperienced.
Protection from creditors and lawsuits: Certain types of trusts can shield assets from creditors or legal judgments. This is useful if you work in a high-risk profession or have concerns about liability.
Incapacity planning: A revocable living trust can include provisions for how your assets should be managed if you become incapacitated. This avoids the need for a court-appointed guardian.
Support for loved ones with special needs: A special needs trust allows you to provide for a child or adult with disabilities without disqualifying them from public benefits like Medicaid or SSI.
Reduced estate taxes: Although Wisconsin doesn’t have a state-level estate tax, federal estate taxes may apply. Trusts can help structure your assets in a way that minimizes this burden.
Continuity of asset management: With a trust, your chosen trustee can immediately take over management of the trust assets upon your death or incapacity. There's no delay in accessing funds to pay bills or maintain property.
Protection from family disputes: Trusts offer clarity and legal structure, which helps reduce the risk of disputes between heirs. When decisions are spelled out in writing, it’s easier for everyone to understand your wishes.
Charitable giving: Charitable remainder trusts and similar arrangements allow you to support causes you care about while receiving tax benefits and possibly income during your lifetime.
Each of these benefits becomes even more important when your estate involves real estate, business interests, or blended families. We often work with clients who have multiple goals, and Wisconsin trust law allows us to tailor each trust to fit their needs.
How Trusts Work in Wisconsin
Before we talk about the advantages, it’s helpful to understand how trusts function. In a typical arrangement, you—the grantor—transfer property into a trust. You name a trustee to manage the trust assets and decide how and when those assets will be distributed to your beneficiaries.
Depending on your trust law goals, you can create a revocable living trust, which can be changed during your lifetime, or an irrevocable trust, which offers more protection but is harder to modify.
Under Wisconsin trust law, trusts are governed by the Wisconsin Trust Code (Chapter 701 of the Wisconsin Statutes), which outlines how trusts are created, administered, and enforced. Trusts must meet certain legal requirements to be valid, but once established correctly, they can offer a wide range of benefits.
Why So Many People Choose Trusts Over Wills
While wills are an essential part of any estate plan, they don't offer the same level of control or privacy. Wills are subject to probate, which is a public court-supervised process. Trusts, on the other hand, allow your assets to pass directly to your chosen beneficiaries, often without court involvement.
We’ve worked with many clients who start out thinking they only need a will. But once they understand what trusts can do under Wisconsin trust law, they often decide a trust makes more sense—especially if they have children, own real estate, or want to keep family matters private.
When to Consider Creating a Trust
While everyone’s situation is different, there are several common signs that a trust may be the right choice for you. If you want to avoid probate, care for a disabled loved one, or distribute assets gradually, a trust could offer the structure and protection you’re looking for.
You should also think about a trust if you:
Own property in more than one state
Have a child or spouse from a previous marriage
Anticipate a long-term illness or incapacity
Want to reduce family disputes after your death
Run a small business or own rental property
We work closely with each client to evaluate their current assets, long-term goals, and family dynamics. Based on this, we recommend trust strategies that follow Wisconsin trust law and serve the person’s best interests.
Trust Administration and Your Responsibilities
Creating a trust is only the first step. Once a trust is in place, it must be properly managed. The trustee has a legal duty—known as a fiduciary duty—to act in the best interests of the beneficiaries. This means keeping accurate records, filing any required tax returns, and following the instructions laid out in the trust document.
When we help clients set up a trust, we also provide guidance on how to manage it effectively. If you’re naming someone else as trustee, we’ll help you choose someone responsible, trustworthy, and willing to handle the day-to-day tasks.
If you’re serving as your own trustee, we’ll walk you through your obligations under Wisconsin trust law so nothing is overlooked.
Trust administration doesn’t have to be overwhelming, but it does require diligence. Poor recordkeeping or mistakes in distribution can lead to legal challenges. We offer ongoing legal support to trustees who want help staying on track.
Updating Your Trust Over Time
Life changes—families grow, assets shift, and goals evolve. One of the advantages of a revocable trust is that it can be changed as your situation changes. We recommend reviewing your trust every few years, especially after major events like:
Birth or adoption of a child
Marriage or divorce
Purchase or sale of real estate
Retirement or major career changes
Death of a trustee or beneficiary
Under Wisconsin trust law, you can amend or revoke a revocable trust at any time during your lifetime, as long as you're mentally competent. We handle these updates regularly and make the process simple and efficient.
Trusts as Part of a Larger Estate Plan
A trust works best when it fits into a broader estate plan. We help clients create comprehensive plans that also include wills, powers of attorney, and health care directives. The goal is to protect your assets, express your wishes, and ease the burden on your loved ones during difficult times.
One common mistake we see is setting up a trust but failing to fund it properly. If you don’t transfer assets into the trust—such as by retitling property or updating beneficiary designations—the trust may not function as intended. We guide our clients through this process to make sure their trust works when it matters most.
Contact an Estate Planning Attorney Today
At Lewis & Van Sickle, LLC, we don’t just talk about documents—we talk about people. We’re proud to serve Green Bay, Wisconsin, and the surrounding areas of Oconto, Shawano, Kewaunee, and Sturgeon Bay. Call today.