3 Ways to Use an Individual Trust for Your Retirement Plan

An individual trust is a powerful estate planning tool. If you believe you don’t have enough money to set aside for retirement, an individual trust might be the answer. You can use it to provide income from your fixed assets during retirement. In addition, it can help you avoid probate and reduce taxes. It also offers flexibility in terms of control and ownership of your assets. Here are three ways to use an individual trust for your retirement plan:

Use an individual trust as a retirement plan

One way to use an individual trust in your retirement plan is to actually use it as a retirement plan. A trust will allow you to distribute assets for your benefit when you retire. You can also redirect the income from the trust to provide you with retirement income. Plus, the trust will reduce your taxes and probate risk.

Use it to provide income from your assets during retirement

One of the most common reasons for using an individual trust is to provide income from your fixed assets during retirement. A fixed asset is typically something that cannot be easily turned into cash. For example, a vacation home or family-owned business can be considered a fixed asset. When you set up an individual trust, the trust document will dictate how the income from that particular asset will be distributed to you during retirement. This way, you will have funds available when you need them without having to sell off any of your assets.

Reduce taxes by using an individual trust

When it comes to reducing taxes, an individual trust can help. This is because you can transfer assets into the individual trust and avoid paying estate and inheritance taxes.

There are a few different types of trusts that can be used to reduce taxes:

* A Charitable Remainder Trust

* A Charitable Lead Trust

* A Grantor Retained Annuity Trust

Each of these trusts provides a variety of benefits, but most importantly, they’ll help save on inheritance and estate taxes.

Protect against probate with an individual trust

One of the many benefits of an individual trust is the flexibility it provides for avoiding probate. Probate can be expensive and complicated, especially if you’re not living in your home state. Plus, you don’t want to spend your retirement worrying about which family members are up next to handle your affairs; instead, you want to enjoy life.

The fact that probate is avoided with an individual trust means that assets will pass through the trust to one or more beneficiaries according to the terms of the trust agreement. Unlike a traditional estate planning tool like a Will where assets are distributed according to the dictates of state law, an individual trust allows you to control what happens with your assets after death.


Adding an individual trust to your retirement plan can help you achieve many goals at once. You can keep your assets in a trust during your lifetime, which protects them from probate and reduces your taxes by utilizing the trust’s tax bracket. It’s a great way to make the most of a trust’s tax benefits and reduce your risk of losing your estate to probate.