An Introduction to Trusts

You may have heard the term “trust” before but aren’t sure what it means or how it can help as you progress toward retirement. In essence, a trust is a legal arrangement that is an estate management document that allows you to transfer ownership of your assets to a third party. The objective of a trust is to hold the assets and help avoid probate concerns.1

Trusts come in many forms, each designed to address specific needs and pursue various goals.

Every trust begins with a grantor, who establishes the trust and has the legal right to transfer assets into it. The beneficiary is the person—or sometimes multiple people or an organization—who receives the trust's benefits. A trustee is the person or institution appointed to manage the trust's assets on behalf of the beneficiary; they are responsible for following the instructions outlined in the trust document and are instructed to act in the best interests of the beneficiaries. Trusts require a great deal of trust, so they are aptly named!

A trust must be funded, naturally. Funding refers to transferring ownership of assets, such as real estate, accounts, or valuable personal property, from the grantor to the trust. Any assets not formally transferred into the trust remain outside of its control. A revocable trust gives the grantor the flexibility to make changes or even revoke the trust during their lifetime. In contrast, an irrevocable trust generally cannot be modified once established, except in rare or exceptional situations. With an irrevocable trust, the grantor typically gives up full control of the assets and must comply with the terms outlined in the trust document. A revocable living trust can allow you to retain control of your assets while alive and provides clear instructions for their management after your death. You don’t need to transfer all your assets to the trust immediately; you can add to it gradually as you acquire new property or investments.1,2

Setting up a trust requires understanding a complex set of tax rules and regulations. Before moving forward with a trust, you might consider speaking with a financial professional who can explain the pros and cons of a trust and give you an overview of the types of trusts available. A few approaches can be used when setting up a trust, but often a legal professional can help, especially when there are complex family considerations.

Health Tip

Small changes could subtly contribute to better health

Set a goal for a 15-minute walk or bike ride each day. Replace other beverages with a glass of water. Eat a piece of fruit for your dessert.

Exploring Intergenerational Relationships: Connecting with Younger Generations

One of the great mysteries of aging is how to communicate well with younger people. As we age, the world seems to change while we are distracted with our own lives, and suddenly, we find ourselves feeling so different from the young people around us, even our children and grandchildren. Intergenerational relationships—meaningful interactions between older and younger adults—can bring many benefits. These relationships offer mutual advantages that enrich the lives of both age groups.

Many older people struggle with loneliness and isolation. Interacting with younger individuals offers companionship, can help reduce feelings of isolation, and promotes a sense of emotional fulfillment. They also give them a renewed sense of purpose as they share their stories and life lessons, boosting self-worth and emotional resilience. The energy and perspective of younger people inspire positivity and help older people stay mentally and emotionally engaged.

One path is to become both a teacher and a student. Engaging in shared activities, such as learning technology or trying out new hobbies, helps older adults remain connected and curious. These can lead to deep connections and promote a sense of belonging. At the same time, younger individuals may benefit from the guidance and wisdom passed down. Many older adults also enjoy learning new skills introduced by younger companions, such as using current technologies. These learning experiences encourage lifelong curiosity, help seniors stay connected, and can even support cognitive health.

Younger generations often lead more physically active lifestyles, and their habits can inspire seniors to move more. Whether walking together, gardening, or playing games, these shared activities can improve mobility, flexibility, and overall energy.

Reaching out to younger adults may feel intimidating, whether through your family, community, or religious practice, but these connections hold many benefits. Remaining open and building these connections and friendships are some of the most valuable things you can do as you mature and approach retirement.3

Did You Know?

The changing focus of apple orchards

Before the early 1900s, apples were primarily harvested for use in hard cider and seldom eaten. The rise of the temperance movement amounted to bad press for farmers with apple orchards. Farmers extolled the benefits of eating apples in response: “An apple a day keeps the doctor away.”4

On the Bright Side

The Viral Sensation… from 1962?

It’s not unusual for older songs to have big comebacks when used in TV commercials and movie soundtracks, but it’s even more unique to have a song from the 1960s sweep social media. Connie Francis’ 1962 track “Pretty Little Baby” has become a popular song on video-sharing apps, with celebs like Kim Kardashian and Kylie Jenner posting their videos using the track. For her part, Francis is pleased that her music has become a hit again, and while she wasn’t initially a user of the apps (and had to ask what they were), she’s now starting accounts and getting involved.5

Brain Teaser

Three playing cards lie face down on a table. A jack is to the left of a queen. To the left of a spade is a diamond. A king is left of a heart. A spade is to the right of a king. What are the three cards?