What Is a Trust — And When Do You Actually Need One?

Estate planning can feel intimidating.

For many P&G professionals, it sits in the category of “I know I should do this… but I’m not sure what I really need.”

You may already have a will. You may have heard that “everyone needs a trust.” Or maybe you’ve been told trusts are only for the ultra-wealthy.

The truth is more nuanced.

Let’s simplify it.

What Is a Trust?

At its core, a trust is a legal arrangement that allows one party (a trustee) to manage assets for the benefit of another (a beneficiary).

There are many types of trusts, but when most people ask this question, they’re referring to a:

Revocable Living Trust

This is the most common trust used in estate planning.

It allows you to:

• Maintain full control of your assets during your lifetime
• Avoid probate at death
• Provide clear instructions for how assets are managed and distributed
• Plan for incapacity
• Keep your estate private (unlike probate, which is public record)

Importantly, a revocable trust does not reduce taxes during your lifetime. It is primarily about control, coordination, and administrative efficiency.

When Do You Actually Need a Trust?

Not everyone needs one.

But many P&G professionals do — especially in these situations:

You Want to Avoid Probate

Probate can be slow, public, and costly depending on your state. If you own real estate in multiple states (for example, a second property in Florida or Michigan), probate becomes even more complicated.

A properly funded trust can streamline this process.

You Have Minor Children (or Children Who Aren’t Financially Mature Yet)

A will allows you to name guardians.

A trust allows you to:

• Control when and how children receive assets
• Stagger distributions (e.g., 1/3 at 30, 1/3 at 35, 1/3 at 40)
• Protect assets from divorce or creditor risk

This is especially important for executives with concentrated stock or significant Savings Plan balances.

You Have a Concentrated P&G Equity Position

Many long-tenured P&G employees hold significant wealth in:

• PST
• Savings Plan
• RSUs / Options
• PG stock in brokerage accounts

A trust can:

• Coordinate beneficiary designations
• Prevent outright distributions that could be mishandled
• Integrate with tax strategies like NUA
• Ensure proper liquidity planning

You Want Asset Protection for Your Heirs

While a revocable trust doesn’t protect your assets during your lifetime, a properly structured trust at death can protect assets for your beneficiaries from:

• Divorce
• Lawsuits
• Creditor claims

For families building generational wealth, this becomes increasingly important.

You Want Clear Incapacity Planning

A trust allows your successor trustee to seamlessly manage assets if you become incapacitated.

Without one, your family may need court involvement.

When a Trust May Not Be Necessary

A simple will may be sufficient if:

• Your estate is modest
• Your assets are primarily retirement accounts with clear beneficiaries
• You don’t own out-of-state real estate
• You’re comfortable with probate
• You don’t need distribution control

Estate planning should fit your life — not follow a checklist.

P&G Employees: Don’t Overlook the ARAG Legal Plan

One of the most underutilized benefits available to P&G employees is the ARAG legal plan.

Many employees don’t realize that ARAG often includes:

• Basic will creation
• Revocable trust creation
• Powers of attorney
• Healthcare directives

For families who need foundational documents, this can be a very cost-effective starting point.

However, it’s important to understand that creating documents is only step one.

The effectiveness of a trust depends on:

• Proper funding
• Correct beneficiary coordination
• Alignment with tax strategy
• Ongoing updates

This is where most plans fall apart.

Where Beyond Wealth Partners Fits In

At Beyond Wealth Partners, we do not draft legal documents.

But we review and coordinate estate plans as part of a comprehensive wealth strategy.

Our process includes:

Reviewing Existing Documents

We examine:

• Trust structure
• Trustee provisions
• Distribution language
• Outdated guardianship or beneficiary terms

Many plans we review are 10–20 years old and no longer reflect current wealth levels or family dynamics.

Coordinating Beneficiary Designations

Your trust and your beneficiary forms must work together.

Retirement accounts (PST, Savings Plan, IRAs) pass by beneficiary designation — not by your will or trust unless properly structured.

Misalignment here can create:

• Unintended tax acceleration
• Assets bypassing trusts
• Loss of creditor protection

Partnering with Your Estate Attorney

We regularly collaborate with estate planning attorneys to ensure:

• Investment strategy aligns with trust structure
• Tax planning integrates with estate planning
• Liquidity is available to support trust distributions
• Charitable strategies (DAFs, foundations, bequests) are coordinated

Your attorney handles the legal structure.

We ensure the financial architecture supports it.

The Real Question Isn’t “Do I Need a Trust?”

The better question is:

What outcome do I want for my family if something happens to me?

• Simplicity?
• Control?
• Protection?
• Privacy?
• Generational planning?

A trust is simply a tool.

Used properly, it creates clarity and protection.

Used improperly — or left unfunded — it’s just paper.

Final Thought

Many P&G professionals spend decades building wealth.

Far fewer spend the time ensuring it transfers intentionally.

If you have estate documents in place, we’re happy to review them and coordinate with your attorney to make sure everything is aligned with your broader wealth plan.

And if you’re just getting started, the ARAG benefit may be a great place to begin.

The key isn’t complexity.

It’s coordination.