Many people choose to create a trust when developing their estate plan. This is because a trust can be very beneficial and makes it possible for an individual to have control over his or her assets and how they’re handled. Take a look at the information below, to better understand the use of a trust. If you have any questions, or if you’d like to create a trust, contact an estate planning attorney to discuss your individual needs.
The differences between a revocable and irrevocable trust
If you choose to create a revocable trust, you’re able to make changes to it during your lifetime, so long as you have capacity. This means you can change which assets you decide to title in the trust’s name, chosen beneficiaries, and/or your trustee selection.
A revocable trust is also a beneficial tool because the trust’s assets avoid probate, it keeps the affairs private, and can allow an individual to plan for incapacity.
An irrevocable trust is one that can’t be changed. Once it’s created, the terms of the trust must stay the same. While this type of trust can’t be changed, it can offer benefits. This includes passing assets for the care of loved ones, as well as charities. In addition, assets in an irrevocable trust may not be subject to federal estate taxes.
Both types of trusts can be a beneficial addition to any estate plan.
The importance of working with an attorney
A qualified estate planning attorney can help any individual create a trust. Your attorney will be able to help you design, draft, execute, fund, and implement your trust. He or she can also answer important questions so that you better understand how your trust works. It’s important to work with an estate planning attorney when creating a trust, so that mistakes are minimized and your estate plan works.