“Living trust” is a term used to describe a trust created during a person’s lifetime. The property or assets move to the beneficiaries when the person passes away. In this way, it’s similar to a will. However, the assets may avoid certain taxes and fees.
The essential aspects of a living trust are whether it is irrevocable or revocable.
The revocable trust is the most common type of trust because it gives the owner some flexibility. As the name suggests, the owner can revoke or change certain parts of the trust after they make it. The owner can even completely terminate the trust if circumstances change.
If you acquire new property or assets between when you make your trust and when you die, you can add them to the trust with this category. Revocable trusts are powerful yet flexible tools that many people opt to use.
An irrevocable trust is precisely the opposite. Once it’s created, no changes can be made. This form of trust requires that the trustor move assets completely into their trustee’s hands.
Many people opt for this form of trust if their health or mental well-being begins to deteriorate. The advantage is that they often avoid taxes altogether, whereas revocable trusts may still be subject to some taxes.
It’s important to have a trust attorney for many reasons. Trusts are complicated, and it can be challenging to understand and differentiate certain aspects. Traversing the process alone leads to mistakes and legal loopholes that leave your family vulnerable.
A trust attorney helps you avoid these pitfalls. We can advise you on what form of trust would best benefit your specific assets and properties. We will discuss your beneficiaries with you and help you consider them when you make your trust. Most of all, we will create a trust that best cares for you during your remaining lifetime. In some situations, a revocable trust best protects the trustor. In other cases, an irrevocable trust is best suited to protect the owner. We will discuss these options with you and help you determine your best course of action.
In some situations, you may name your attorney as your trustee. Though this isn’t always the best course of action, certain individuals don’t trust anyone else enough to name them as their trustee. Proceed with caution when naming a trustee of any kind, as they’ll be responsible for carrying out your wishes and ensuring everything goes according to plan after you pass.
One of the main benefits of a trust is that you can ensure that your assets are secure. There are legal protections surrounding trusts that help to ensure that the trustor’s wishes are properly carried out. This is an improvement over asking family or friends to hold assets for you. No matter how close you are with your loved ones, certain events, jealousies, or changing circumstances can cause them to act out of line with your values. Putting your assets in a trust is a great way to protect them and ensure that they go where you want them to.