Is silence golden? The good and the bad of keeping your trust a secret
Abstract: It’s common for parents to set aside money or other assets in trust for their children or grandchildren. At the same time, many parents agonize over the impact this wealth may have on their heirs. One potential solution is a “silent trust.” These trusts, which are permitted in many states, limit the amount of information shared with beneficiaries or, in some cases, keep the existence of the trust a secret. This article explains the benefits and drawbacks. A sidebar looks at an alternative to the silent trust: a principle trust.