What Is A Trust?
There are multiple types of tools that may be used during the estate planning process. In addition to creating a will that details how certain assets should be distributed to your beneficiaries, you may also want to consider using trusts to hold, manage, and distribute various assets. Trusts can help protect assets from creditors and minimize taxes, and they can benefit you, your spouse, your children, other family members and loved ones, charities, or other beneficiaries. While trusts can be an important part of your estate plan, there are multiple complex issues that may need to be addressed when creating or managing trusts.
As you determine what types of trusts will be best for you and your family, an experienced estate planning attorney can advise you of your best options. The Marques Eason Law Group can assist you with multiple aspects of the estate planning process, and we will help you make decisions about how your assets should be handled, create the necessary documents, and address any issues that you may encounter. We will work with you to create trusts that are custom-tailored to your specific needs and goals.
Legal Help With Different Types of Trusts
A trust is a legal agreement involving three parties. The person who initially creates a trust is known as the grantor or settlor, and the person who manages the assets in the trust is known as the trustee. Beneficiaries will receive distributions from the trust based on instructions provided by the grantor. When a trust is created and funded, assets will be transferred into the trust, and they will be owned by the trust itself rather than the original owner.
There are several different types of trusts that may be used in an estate plan, including:
- Testamentary trusts - In some cases, a person's will may specify that a trust will be created, and certain assets will be transferred into the trust, ensuring that they can be properly distributed to the person's beneficiaries.
- Revocable living trusts - This type of trust is often used to hold assets that may need to be managed during a person's lifetime. The grantor will usually serve as the trustee, allowing them to retain control of the assets in the trust. Since the trust is revocable, the grantor can make changes to the trust agreement as needed. Once the grantor passes away, a successor trustee will take over and manage the assets in accordance with the terms of the trust.
- Irrevocable trusts - Unlike revocable trusts, this type of trust cannot be changed after it has been created. An irrevocable trust may be used to protect assets from creditors, to minimize taxes, or to ensure that the proceeds of a life insurance policy will be distributed correctly to the beneficiaries.
- Special needs trusts - People who wish to provide financial assistance to loved ones with disabilities or other special needs will need to take care when doing so, since giving money or assets directly to a person may make them ineligible for government benefits. A special needs trust can be used to help meet the needs of a disabled person without jeopardizing their ability to receive public aid.
Other types of trusts that may be used for estate planning and legacy planning include charitable trusts, generation-skipping trusts, and annuity trusts.
Contact Our Evergreen Park Trusts Lawyer
It is important to consult with an experienced estate planning attorney when creating trusts or any other type of estate planning document. The Marques Eason Law Group can help you understand the different types of trusts available and the best options to meet your family's needs. We can also provide guidance on how you can use documents such as powers of attorney and advance medical directives to ensure that your wishes will be followed. If you have any questions about trusts or estate planning in general, please contact our office at 773-973-3755 to schedule a consultation. We would be happy to answer your questions and help you get started on creating an estate plan that meets your needs.