The Mechanics of Trusts: Understanding Their Role in Missouri Estate Planning

As an estate planning tool, trusts play an invaluable role in managing and safeguarding assets, both during your lifetime and beyond. This article aims to demystify trusts, explain their workings, and shed light on their importance in the state of Missouri.

What is a Trust?

In its simplest form, a trust is a legal arrangement in which one party (the trustor) gives another party (the trustee) the right to hold and manage assets for the benefit of a third party (the beneficiary). Trusts are a versatile tool for asset protection, estate planning, and tax mitigation.

Types of Trusts

Trusts in Missouri, as in most states, come in two primary forms: revocable and irrevocable.

1. Revocable Trusts: As the name suggests, revocable trusts can be altered, modified, or revoked entirely by the trustor during their lifetime. Upon the trustor's death, the trust becomes irrevocable, and the assets are distributed according to the trust's terms without probate.

2. Irrevocable Trusts: These trusts cannot be altered or revoked without the consent of the beneficiary. The asset transfer into an irrevocable trust is final, providing a high level of asset protection and potential tax benefits.

How Does a Trust Work?

A trust operates by transferring legal ownership of assets from the trustor to the trust itself. The trustee manages these assets as directed by the terms of the trust, either for the benefit of the trustor (during their lifetime in the case of a revocable trust) or for the beneficiary (either during the trustor's life or after their death).

In Missouri, the establishment of a trust requires a written trust agreement, the identification of the trust property, a lawful trust purpose, and a named beneficiary.

Benefits of a Trust

1. Avoidance of Probate: One of the primary benefits of trusts is their ability to bypass the probate process, enabling a quicker, private, and potentially less costly asset distribution.

2. Asset Protection: Trusts, especially irrevocable ones, can provide significant asset protection from creditors or legal judgments.

3. Tax Mitigation: By moving assets out of your estate, trusts may help reduce estate tax liability, particularly for larger estates.


Trusts are a key tool for estate planning, providing flexible options for asset management, protection, and distribution. In Missouri, understanding the nature and operation of trusts can open doors to effective estate planning strategies tailored to meet your specific needs and those of your beneficiaries.