No, Edward Jones cannot set up a trust. Edward Jones Trust Company serves as trustee for existing trusts but does not create trust documents because drafting legal instruments constitutes the unauthorized practice of law. The Florida Supreme Court ruled that assembling, drafting, executing, and funding living trust documents requires legal expertise that only licensed attorneys can provide. Edward Jones financial advisors must refer clients to estate planning attorneys for trust creation because Section 109 of the Unauthorized Practice of Law forbids non-lawyers from selecting, drafting, or completing legal documents that affect another person’s legal rights.
More than 60 percent of Americans die without an estate plan, according to recent surveys, leaving families to navigate probate courts and watch assets shrink through fees. This happens when people confuse financial management with legal document creation and expect their advisors to handle both roles.
What you will learn:
🎯 Why Edward Jones cannot legally draft trust documents and which specific state and federal statutes prohibit financial advisors from practicing law
⚖️ How Edward Jones Trust Company differs from Edward Jones financial advisors and what trustee services they actually provide after attorneys create your trust
💼 The exact process for working with Edward Jones on trust administration, including fees that range from $6,000 minimum to over $20,000 annually for larger estates
📋 Three real-world scenarios showing when to use Edward Jones Trust Company as trustee versus managing agent, with specific dollar amounts and beneficiary situations
🚫 Seven critical mistakes that invalidate trusts or trigger unauthorized practice violations, including the single error that makes 40 percent of trusts completely useless
The Legal Barrier Between Financial Advisors and Trust Creation
Edward Jones cannot create trusts because state bar associations prohibit corporations from practicing law. The landmark Green v. Huntington National Bank case established that banks and trust companies violate unauthorized practice statutes when they draft estate planning documents for customers without independent legal counsel present.
Financial advisors work under Investment Advisers Act regulations that permit investment guidance but prohibit legal advice. Edward Jones advisors can discuss trust benefits and recommend meeting with attorneys, but they cannot suggest specific trust provisions or draft document language.
The distinction matters because trust creation requires applying legal principles to individual circumstances. Courts across jurisdictions recognize that determining which trust type suits a situation, selecting appropriate trustee powers, and drafting distribution provisions all require legal training that financial advisors do not possess.
Edward Jones protects itself and clients by maintaining clear boundaries. Their disclosure statements explicitly state that neither financial advisors nor Edward Jones Trust Company employees provide estate planning or legal advice, and clients must consult qualified attorneys for document preparation.
What Edward Jones Trust Company Actually Does
Edward Jones Trust Company provides professional trustee services for trusts that attorneys create. The company operates as a separate subsidiary of Edward D. Jones & Co., offering administrative and asset management services after legal documents exist.
The Trust Company acts in four distinct capacities. As a managing agent, they provide discretionary asset management through simple agreements without full trustee duties. As trustee or co-trustee, they assume complete fiduciary responsibility for trust administration. As successor trustee, they take control when original trustees resign, become incapacitated, or die.
Trust Company services include maintaining diversified portfolios based on trust specifications and beneficiary needs. They collect income, distribute assets, pay bills from trust accounts, and prepare federal and state fiduciary tax returns annually.
Edward Jones Trust Company coordinates with clients’ existing professional teams rather than replacing them. Trust professionals work alongside attorneys who drafted the documents and accountants who handle broader tax planning. This collaborative approach ensures trusts function as attorneys designed while financial advisors manage investment strategies.
The company maintains records according to trust principal and income accounting standards. They provide clear account statements, offer safekeeping for trust-related legal documents, report required information to beneficiaries, and give beneficiaries online access to current account information.
Requirements for Creating a Valid Trust
Trust creation starts with clear intent from the person establishing it, called the settlor or grantor. The settlor must own property or assets to transfer into the trust at the time of creation, and the trust must serve legal purposes rather than shielding property from creditors illegally.
Creation documents must identify specific assets for the trust. A trust holding no assets provides no legal control and defeats primary purposes like avoiding probate. Documents must clearly name beneficiaries and state rights and duties for the trustee who manages assets.
State laws govern execution requirements. Some states require notarization of trust documents while others accept witness signatures. California, Florida, and Texas each maintain different formality requirements for trust validity.
Property or assets must undergo legal transfer to the trust through a process called funding. Real estate requires new deeds transferring property from personal ownership to trust ownership. Bank accounts need retitling in the trust’s name with financial institutions.
Eight states mandate trust registration including Alaska, Colorado, Florida, Hawaii, Idaho, Maine, Michigan, Missouri, Nebraska, and North Dakota. Registration allows courts to preside over disputes but does not permit court oversight of trust management. Filing typically requires submitting a statement with appropriate courts, and trusts should register in only one state at a time.
Federal Law Versus State Nuances in Trust Creation
Federal law establishes baseline estate tax exemptions that affect trust planning nationwide. The 2025 federal estate tax exemption stands at $13.99 million per individual and $27.98 million for married couples. Any estate value below these thresholds escapes federal estate taxes.
Generation-skipping transfer tax rules apply when trusts transfer wealth to grandchildren or later generations. The GST tax exemption matches estate tax exemptions at $13.99 million per person for 2025. Trusts skipping generations without proper planning face 40 percent tax rates on amounts exceeding exemptions.
State trust laws vary dramatically across jurisdictions. Delaware requires trusts to include specific acknowledgment language similar to real estate deeds. New York courts scrutinize trusts for proper acknowledgment and clear intent, striking down improperly executed trusts regardless of obvious intent.
Wisconsin limits trust duration to 90 years under its rule against perpetuities, forcing asset distribution to beneficiaries within that timeframe. Delaware permits trusts to continue indefinitely without duration limits. South Dakota allows near-perpetual dynasty trusts that benefit multiple generations.
State asset protection laws create different creditor shields. Alaska requires marital consent for trust formation and maintains strict four-year scrutiny periods for examining fraudulent transfers. Nevada uses shorter two-year timeframes but prohibits creditor exceptions completely.
Privacy protection varies by state. Nevada and Wyoming leave sealing of trust documents to judicial discretion. Delaware automatically seals trusts for three years before requiring appeals to judges for public access.
Understanding Different Trust Types
Revocable Living Trusts
Revocable trusts allow grantors to modify terms during their lifetimes. Grantors retain control over assets and can change beneficiaries, remove property, or dissolve trusts entirely at any time. Assets in revocable trusts remain part of taxable estates for federal estate tax purposes.
Revocable trusts avoid probate by transferring property outside personal estates. Upon death, trusts become irrevocable automatically and distribute assets to beneficiaries without court involvement. Grantors typically serve as their own trustees during their lifetimes.
Assets in revocable trusts receive no creditor protection during grantor lifetimes. Creditors can pursue trust assets for judgments or debt settlements against grantors. At death, creditors may file claims against estates before beneficiaries receive distributions.
Irrevocable Trusts
Irrevocable trusts cannot change easily once established. Grantors relinquish ownership and control when transferring assets into irrevocable trusts. Trustees manage property according to original trust terms without grantor interference.
Assets in irrevocable trusts leave taxable estates completely. Federal estate taxes do not apply to trust property at grantor death. Removing assets from estates provides protection from creditors and legal judgments.
Changes to irrevocable trusts require approval from all beneficiaries plus the grantor when alive. Courts may authorize modifications under limited circumstances, but the process proves difficult and expensive. Irrevocable trusts need experienced attorneys for proper establishment.
Irrevocable trusts face higher income tax rates than individuals. Trust tax brackets compress quickly, reaching maximum rates at lower income levels than personal tax brackets. Grantors must carefully analyze tax implications before establishing irrevocable trusts.
Special Needs Trusts
Special needs trusts protect government benefits for individuals with disabilities. Assets in properly structured special needs trusts do not count toward resource limits for Medicaid or Supplemental Security Income eligibility. Beneficiaries maintain access to needs-based government programs while receiving additional financial support.
First-party special needs trusts hold assets belonging to disabled individuals. Personal injury settlements or inheritances received by people with disabilities fund these trusts. Parents, grandparents, legal guardians, or courts establish first-party trusts before beneficiaries reach age 65.
Third-party special needs trusts use assets from family members rather than disabled beneficiaries. Parents or grandparents create third-party trusts during lifetimes or through wills. No Medicaid payback requirement applies when beneficiaries die, and remaining assets pass to other designated beneficiaries.
Pooled special needs trusts combine resources from multiple beneficiaries under nonprofit organization management. These trusts work well for smaller estates or situations without family members able to serve as trustees. Nonprofit organizations maintain separate accounts for each beneficiary while providing professional administration.
Testamentary Trusts
Testamentary trusts exist only in wills and activate upon testator death. These trusts go through probate before funding, unlike living trusts that avoid court involvement. Wills contain provisions creating trusts and naming trustees to manage property for beneficiaries.
Minor children commonly benefit from testamentary trusts. Parents specify ages when children receive property outright rather than giving everything at age 18. Trustees can distribute portions at different milestones such as 25, 30, and 35.
Testamentary trusts offer less privacy than living trusts because wills become public through probate. Court records reveal trust terms, beneficiary identities, and asset values. Families wanting confidentiality should use living trusts instead.
How Edward Jones Works with Attorneys on Trust Administration
Edward Jones financial advisors identify estate planning needs during client meetings. Advisors help clients prioritize financial legacy goals and consider how those align with retirement planning and other objectives. When trust solutions appear beneficial, advisors refer clients to qualified estate planning attorneys.
Attorneys draft legal documents based on goals discussed with clients and financial advisors. Tax professionals determine tax implications of proposed trust structures before finalization. The collaborative team ensures trusts meet legal requirements while supporting broader financial strategies.
After attorneys create trust documents, clients can engage Edward Jones Trust Company for administration. The Trust Company evaluates whether professional trustee services match family needs. Trust officers explain different service levels including managing agent, trustee, co-trustee, or successor trustee roles.
Edward Jones Trust Company assumes duties once trustees sign service agreements and complete asset transfers. Trust officers work with local branch financial advisors to implement investment strategies. This structure provides institutional trustee experience combined with personal relationships clients already established.
Edward Jones Trust Company Fee Structure
Minimum annual fees start at $6,000 for first accounts and $3,000 for additional accounts. These minimums apply regardless of account size, potentially making small trusts cost-prohibitive for modest estates.
Annual base charges vary by service level. Trustee or co-trustee roles cost $1,200 per year base charge. Managing agent services charge $600 annual base fees. Individual retirement account trusts assess $300 yearly base charges.
Asset-based fees apply in addition to base charges. The first $500,000 of assets under management costs 1.50 percent annually. The next $500,000 costs 1.15 percent per year. Assets between $1 million and $3 million cost 0.75 percent annually. Assets between $3 million and $5 million cost 0.50 percent per year.
Fee Calculation Example
| Account Value Component | Annual Fee Rate | Calculated Fee |
|---|---|---|
| Base charge (trustee) | Flat fee | $1,200 |
| First $500,000 | 1.50% | $7,500 |
| Next $500,000 | 1.15% | $5,750 |
| Next $1,000,000 | 0.75% | $7,500 |
| Total annual fees | N/A | $21,950 |
Real estate services add extra charges. Title transfers without sales cost $1,500 per occurrence. Property sales charge $3,750 per occurrence. Annual property administration fees assess $750 per property.
Tax preparation services vary by complexity. Grantor trust tax returns cost $300 annually. Irrevocable trust returns cost $500 per year. Estate income tax returns run $600 annually. Charitable remainder trust returns and private foundation returns each cost $600 per year.
Trust settlement services charge percentage-based fees on total assets. Estates up to $2 million cost 2 percent with $12,500 minimums. The next $3 million costs 1.5 percent. Assets over $5 million cost 1 percent. Estate settlement including personal representative duties starts at 2 percent with $17,500 minimums.
Three Common Trust Scenarios with Edward Jones
Scenario One: Married Couple with Minor Children
Sarah and Michael own $2.8 million in assets including a home, retirement accounts, and investment portfolios. They have three children ages 8, 11, and 14. Their estate planning attorney recommends a revocable living trust to avoid probate and protect children if both parents die.
| Planning Component | Action Taken |
|---|---|
| Trust creation | Attorney drafts revocable living trust naming both spouses as initial trustees |
| Successor trustee | Edward Jones Trust Company named as successor trustee if both parents die or become incapacitated |
| Asset funding | Home, bank accounts, and brokerage accounts retitled in trust name |
| Guardian designation | Separate will names trusted family member as children’s guardian |
| Distribution terms | Trust pays for children’s health, education, and support until age 25 |
The attorney includes provisions allowing trustees to distribute portions of trust assets when each child reaches ages 25, 30, and 35. The trust protects assets from immature decisions while ensuring children’s needs receive funding immediately after parents’ deaths without court delays.
Edward Jones financial advisor helps Sarah and Michael fund the trust properly. The advisor coordinates with Edward Jones Trust Company to prepare for potential successor trustee duties. If both parents die, the Trust Company would charge annual fees of approximately $1,200 base plus $37,250 in asset-based fees, totaling $38,450 per year for the $2.8 million estate.
Scenario Two: High Net Worth Individual Planning for Estate Tax
Robert owns a $25 million estate consisting of real estate holdings, business interests, and investment accounts. He wants to minimize estate taxes while maintaining access to assets during his lifetime. His attorney recommends establishing multiple trust types to achieve his goals.
| Trust Strategy | Purpose and Consequence |
|---|---|
| Irrevocable life insurance trust | Removes $5 million life insurance death benefit from taxable estate, saving approximately $2 million in estate taxes |
| Spousal lifetime access trust | Transfers $12 million to irrevocable trust with wife as beneficiary, providing indirect access while removing assets from Robert’s estate |
| Revocable living trust | Holds remaining $8 million in assets Robert controls directly during lifetime, avoiding probate at death |
Robert works with Edward Jones financial advisor to allocate investments across different trusts. The irrevocable life insurance trust requires a separate trustee who cannot be Robert. Edward Jones Trust Company serves as trustee for this trust and as managing agent for the spousal lifetime access trust.
The total annual fees reach approximately $95,000 across all trusts. Robert accepts these costs because they save his heirs millions in estate taxes. His estate falls below the $27.98 million combined exemption for married couples after trust planning, eliminating federal estate tax exposure.
Scenario Three: Business Owner Planning Succession
Jennifer owns a manufacturing business valued at $18 million. She has two children actively working in the business and one child pursuing different careers. An attorney helps Jennifer create an intentionally defective grantor trust to transfer business ownership while minimizing taxes.
| Succession Component | Implementation Details |
|---|---|
| Business valuation | Independent appraisers determine fair market value at $18 million |
| Trust creation | Attorney establishes intentionally defective grantor trust with children as beneficiaries |
| Sale to trust | Jennifer sells business to trust for $18 million promissory note payable over 15 years |
| Tax treatment | Sale avoids gift taxes; trust pays Jennifer from business income; Jennifer pays income taxes on trust earnings, allowing assets to grow tax-free inside trust |
Edward Jones Trust Company serves as trustee managing promissory note payments to Jennifer. The trust owns business interests while children manage daily operations. When Jennifer dies, the business passes to children without estate taxes because the sale removed it from her estate.
The business appreciates to $25 million by Jennifer’s death. The $7 million appreciation occurs inside the trust and escapes estate taxation. Jennifer’s estate includes only the remaining promissory note balance plus her other assets, staying below federal exemption limits.
Trusts and Probate Avoidance
Probate involves court supervision of asset distribution after death. The process typically takes six months to two years depending on estate complexity and state requirements. Executors pay court fees, attorney fees, and administrative costs before distributing remaining assets to beneficiaries.
Assets properly funded into trusts bypass probate completely. Trustees distribute property directly to beneficiaries according to trust terms without court approval. Beneficiaries receive inheritances faster and avoid public disclosure of estate details.
Revocable living trusts represent the most common probate avoidance tool. Grantors transfer ownership of real estate, bank accounts, and investment accounts into trust names during lifetimes. Upon death, assets already belong to trusts rather than personal estates, so probate does not apply.
Empty trusts fail to avoid probate when grantors forget to fund them. A trust holding no assets provides zero legal control, and unfunded property passes through wills into probate. This common mistake eliminates primary trust benefits while wasting attorney fees spent creating documents.
Trusts and Estate Tax Reduction
Federal estate tax applies only to estates exceeding exemption amounts. The 2025 exemption of $13.99 million per person means most Americans avoid estate taxes entirely. Wealthy families with estates above exemptions use trusts to reduce tax exposure.
Bypass trusts help married couples maximize exemptions. When the first spouse dies, bypass trusts receive assets up to the deceased spouse’s exemption amount. The surviving spouse accesses trust income without increasing personal estate size. Assets in bypass trusts avoid taxation at the second death.
Charitable remainder trusts remove assets from taxable estates while providing income. Grantors transfer appreciated property into trusts that pay them income streams for specified periods. When trusts terminate, remaining assets go to designated charities. Grantors receive immediate income tax deductions and avoid capital gains taxes on appreciated property.
Irrevocable life insurance trusts keep life insurance death benefits outside taxable estates. Policyholders transfer ownership of policies to irrevocable trusts before death. Death benefits pay directly to trusts rather than estates. Beneficiaries receive insurance proceeds without estate tax liability, potentially saving millions for large policies.
Qualified personal residence trusts transfer home ownership to beneficiaries at reduced gift tax values. Grantors transfer homes into trusts while retaining the right to live there for specific terms such as 10 or 15 years. After terms expire, homes belong to beneficiaries even though grantors continue living there by paying fair market rent.
Critical Mistakes to Avoid
Failing to Fund the Trust
The most common error involves creating trust documents but never transferring assets into trust ownership. Assets titled in personal names pass through probate regardless of trust existence. Real estate requires recording new deeds transferring property to trust names.
Bank accounts need retitling with financial institutions. Investment accounts require new account applications showing trust ownership. Business interests demand assignment documents transferring shares or membership units to trusts. Physical personal property needs written assignments listing items transferred to trust control.
Choosing the Wrong Trustee
Trustees must possess financial knowledge, organizational skills, and impartiality to serve effectively. Family members may create conflicts when distributing assets among beneficiaries. Trustees who mismanage investments or fail to keep accurate records face personal liability for losses.
Professional trustees like Edward Jones Trust Company bring experience and eliminate family conflicts. Corporate trustees remain objective when making distribution decisions and maintain institutional knowledge across decades. Individuals considering corporate trustees should compare fees and services before selecting providers.
Not Updating Trust Documents
Major life events require trust modifications. Births, deaths, marriages, and divorces all change family dynamics and beneficiary needs. Outdated documents may name deceased individuals as trustees or beneficiaries, creating confusion during administration.
Tax law changes affect trust effectiveness over time. The 2025 estate tax exemption of $13.99 million drops to approximately $7 million in 2026 unless Congress acts. Trusts designed assuming high exemptions may need restructuring when exemptions decrease.
Using Vague Distribution Language
Ambiguous trust terms cause beneficiary disputes and litigation. Phrases like reasonable living expenses or adequate support mean different things to different people. Courts must interpret vague language when trustees and beneficiaries disagree about distributions.
Attorneys draft specific distribution standards including dollar amounts, percentage formulas, or detailed criteria for discretionary distributions. Clear language eliminates confusion and prevents costly litigation among family members after grantors die.
Naming Yourself as Trustee of Irrevocable Trusts
Grantors cannot serve as trustees of their own irrevocable trusts. Retaining trustee control keeps trust assets in taxable estates, defeating primary purposes of irrevocable trust planning. Tax law treats grantors as trust owners when they maintain management authority.
Independent trustees must manage irrevocable trust assets. Family members, friends, or corporate trustees like Edward Jones Trust Company provide required separation between grantors and trust property. Proper trustee selection ensures trusts achieve intended tax benefits.
Overlooking Beneficiary Designations
Retirement accounts and life insurance policies transfer through beneficiary designations rather than trust terms. Accounts naming individuals as beneficiaries pass directly to those people regardless of trust provisions. Outdated designations may send assets to ex-spouses or deceased relatives.
Trusts can serve as beneficiaries for retirement accounts and life insurance. Naming trusts as beneficiaries ensures assets receive trust protections and follow distribution terms grantors intended. Financial advisors help clients coordinate beneficiary designations with overall estate plans.
Attempting DIY Trust Creation for Complex Situations
Simple online templates work for straightforward estates with minimal assets and few beneficiaries. Complex situations involving blended families, special needs beneficiaries, business interests, or tax planning require attorney expertise. DIY trusts often lack provisions needed for unique circumstances.
State-specific legal requirements vary dramatically. California requires certain language about funding while Texas maintains different rules for trust administration. Attorneys ensure documents comply with applicable state laws and achieve clients’ objectives properly.
Unauthorized Practice of Law Concerns
Financial advisors commit crimes when they draft trust documents, select specific trust provisions, or apply legal principles to individual situations. Every state defines unauthorized practice of law differently, but generally includes giving legal advice or drafting legal documents for others.
The Florida Supreme Court ruled that assembling, drafting, executing, and funding living trust documents constitutes law practice. Life insurance agents may sell policies that fund trusts and offer financial advice about funding, but cannot draft trust language or provide legal counsel.
Corporate fiduciaries face restrictions when providing estate planning services. Trust companies can discuss trust benefits, explain how their services work, and provide general information about trust types. They cannot recommend specific trust provisions, draft distribution language, or apply tax law to individual circumstances without crossing into law practice.
Consequences for unauthorized practice range from cease-and-desist orders to financial penalties or restitution. Practitioners may face jail time depending on whether courts find intentional violations. Civil liability includes refunding fees charged for services and paying damages to harmed clients.
Edward Jones protects advisors and clients by maintaining strict boundaries. Advisors receive training on acceptable discussions about trust benefits versus prohibited legal advice. When clients need trust documents, advisors provide attorney referrals rather than attempting to help with document language.
Trustee Versus Executor Differences
Executors manage estates through probate courts after death. Wills name executors who receive court appointments and Letters Testamentary authorizing them to act on behalf of estates. Executors pay debts, file tax returns, and distribute remaining assets to beneficiaries according to will terms.
Trustees manage trust assets during grantor lifetimes and after death. Trust documents name trustees without court involvement. Trustees have no probate duties because trust property never enters estates. Trustees operate under trust terms rather than court supervision.
The same person often serves both roles. Many estate plans name individuals as executors in wills and as successor trustees in trusts. When grantors die, these fiduciaries handle probate for assets passing through wills and administer trusts for assets properly funded during lifetimes.
Accountability differs between roles. Executors answer to probate courts and file periodic accountings showing asset management. Trustees answer directly to beneficiaries and must provide regular statements. Trust beneficiaries can sue trustees for breaches of fiduciary duty without involving probate courts.
Do’s and Don’ts of Working with Edward Jones on Trusts
Do’s
Do consult estate planning attorneys before engaging Edward Jones Trust Company because attorneys create legally valid documents that Trust Company employees cannot draft. Proper sequencing ensures trusts meet legal requirements before administration begins.
Do discuss trust benefits with Edward Jones financial advisors as part of comprehensive financial planning because advisors help identify situations where trusts make sense. Advisors explain probate avoidance and estate tax reduction without crossing into legal advice.
Do request fee disclosures before appointing Edward Jones Trust Company as trustee because understanding total costs helps families make informed decisions. Minimum fees of $6,000 annually may prove cost-prohibitive for smaller trusts.
Do coordinate beneficiary designations with trust terms to ensure retirement accounts and life insurance policies support overall estate plans. Mismatched beneficiary designations undermine trust planning and send assets to unintended recipients.
Do fund trusts properly by retitling all assets because unfunded trusts provide zero legal benefits and waste money spent on attorney fees. Asset transfer requires new deeds, account applications, and assignment documents depending on property types.
Don’ts
Don’t ask Edward Jones financial advisors to draft trust documents or suggest specific provisions because doing so violates unauthorized practice of law statutes in every state. Advisors must refer clients to qualified attorneys for document preparation.
Don’t assume Edward Jones Trust Company will automatically serve as your trustee without executing separate service agreements and paying applicable fees. Trust Company services require formal engagement after trust creation.
Don’t name Edward Jones financial advisors personally as trustees unless they agree to serve in individual capacities separate from employment. Financial advisors working as individual trustees may create conflicts of interest between personal obligations and employer relationships.
Don’t delay trust funding after document creation because assets titled in personal names pass through probate regardless of trust existence. Immediate funding ensures trusts function as intended from the start.
Don’t forget to update trusts after major life events such as births, deaths, marriages, divorces, or significant asset changes. Outdated documents cause family conflicts and fail to reflect current wishes.
Pros and Cons of Edward Jones Trust Company Services
| Pros | Cons |
|---|---|
| Institutional experience: Edward Jones Trust Company brings decades of professional trustee experience and maintains consistent standards across all client relationships | High minimum fees: Annual minimums of $6,000 for first accounts make services cost-prohibitive for estates below $500,000 in value |
| Local relationships: Trust officers work with clients’ existing financial advisors in local branch offices, combining personal service with corporate expertise | No document creation: Trust Company cannot draft trust documents, forcing clients to hire attorneys separately and coordinate between multiple professionals |
| Objective decision-making: Corporate trustees eliminate family conflicts by making impartial distribution decisions based on trust terms rather than personal relationships | Limited flexibility: Large institutions may move slower than individual trustees when beneficiaries need quick distributions for emergencies |
| Perpetual existence: Corporations continue operating indefinitely, avoiding problems when individual trustees die, become incapacitated, or resign from duties | Asset-based fees: Percentage-based fees on assets under management can exceed $20,000 annually for larger trusts, reducing inheritance values over time |
| Professional asset management: Trust Company provides sophisticated investment management aligned with trust specifications and beneficiary needs over long time horizons | Regulatory constraints: Corporate trustees face stricter investment restrictions than individual trustees, potentially limiting investment strategies |
FAQs
Can Edward Jones create a living trust for me?
No. Edward Jones financial advisors and Trust Company employees cannot draft legal documents because doing so violates unauthorized practice of law statutes. You must hire licensed attorneys for trust creation.
What services does Edward Jones Trust Company actually provide?
Yes, trustee services only. The Trust Company serves as trustee, co-trustee, successor trustee, or managing agent for existing trusts. Services include asset management, bill payment, and tax return preparation.
How much does Edward Jones Trust Company charge?
Minimums start at $6,000 annually. Fees include $1,200 annual base charges plus percentage-based fees from 0.50% to 1.50% of assets under management depending on account size.
Can my Edward Jones financial advisor serve as my trustee?
No, not in professional capacity. Advisors may serve as individual trustees separate from employment, but this creates potential conflicts. Consider naming Trust Company or independent trustees instead.
Do I need an attorney if I use Edward Jones Trust Company?
Yes, always for document creation. Edward Jones Trust Company administers trusts that attorneys create. You must hire estate planning lawyers to draft valid trust documents before engaging trustees.
What happens to my trust if I move to another state?
Trust remains valid but review needed. Trusts created in one state work in others, but state law differences may require amendments. Consult local attorneys after moves to ensure continued compliance.
Can Edward Jones Trust Company serve as executor of my will?
Yes, through estate settlement services. Trust Company provides personal representative services including executor duties. Estate settlement fees start at 2% with $17,500 minimums.
Will my trust avoid probate?
Yes, if properly funded. Assets titled in trust names bypass probate completely. Unfunded trusts fail to avoid probate for assets remaining in personal names.
Can I change my trust after creation?
Yes, for revocable trusts only. Revocable trusts allow modifications anytime during grantor lifetime. Irrevocable trusts cannot change without beneficiary consent and court approval.
Does a trust eliminate estate taxes?
No, but some trusts reduce them. Revocable trusts provide no estate tax benefits. Irrevocable trusts remove assets from taxable estates, potentially saving millions for wealthy families.
Can I use online services instead of hiring an attorney?
Yes, but risky for complex situations. DIY templates work for simple estates with minimal assets and few beneficiaries. Complex situations need attorney expertise for proper planning.
What assets should I put in my trust?
Real estate, bank accounts, investment accounts. Transfer property with deeds, retitle financial accounts, and assign business interests. Retirement accounts typically name trusts as beneficiaries rather than owners.
How long does trust administration last?
Varies by trust terms. Lifetime trusts continue until beneficiaries reach specified ages or conditions occur. Testamentary trusts end after distributing all assets per trust instructions.
Can Edward Jones help with special needs trusts?
Yes, as trustee only. Trust Company administers special needs trusts that attorneys create. Specialized knowledge ensures distributions preserve government benefit eligibility for disabled beneficiaries.
What if my named trustee refuses to serve?
Successor trustees take over. Trust documents name alternates who serve when primary trustees decline. Without successors, courts appoint trustees under state law.
Do I still need a will if I have a trust?
Yes, pour-over wills catch unfunded assets. Wills transfer property forgotten during trust funding and name guardians for minor children, which trusts cannot do.
How often should I review my trust?
Every three to five years minimum. Review after major life events and tax law changes. Regular reviews ensure trusts reflect current wishes and comply with updated regulations.
Can creditors reach assets in my trust?
Depends on trust type and timing. Revocable trust assets remain vulnerable to creditor claims. Irrevocable trusts provide protection but face scrutiny periods before shielding assets completely.
What information does Edward Jones Trust Company report to beneficiaries?
Annual statements and tax information. Trust companies provide account statements, tax information letters, and detailed reporting about trust assets, income, and distributions per fiduciary duties.
Can I name Edward Jones Trust Company and a family member as co-trustees?
Yes, co-trustee arrangements work. Corporate and individual co-trustees combine family knowledge with professional management. Trust terms should specify decision-making authority to prevent conflicts.
Related reading
- Can I Really Register My Own Trust? – Avoid This Mistake + FAQs
- Can I Register a Revocable Living Trust Myself? + FAQs
- Can You Set Up a Trust Without an Attorney? (w/ 7 Examples) + FAQs
- Is Estate Planning the Same as a Trust? (w/Examples) + FAQs
- Do Edward Jones Accounts Have Beneficiaries? (w/Examples) + FAQs
- Does Edward Jones Do Taxes? (w/Examples) + FAQs
- Can a Grantor Be a Beneficiary of an Revocable Trust? + FAQs