Trust Law
Trusts are often created to assist heirs with gaining assets while avoiding some legal concerns, such as people who may challenge a will. Trusts may evade certain taxes and help keep any income within the family.
Advantages of Using a Trust Over a WillMany people decide to use a trust or a will as their primary estate planning tool. Both of these documents serve important roles in a person’s estate plan. However, there are some distinct advantages of using a trust over a will.
Read more- Can I Avoid Probate?
Probate is a process in which a person’s final affairs are wrapped up, debts are paid off and any remaining assets are distributed according to the terms of a will or the laws of intestacy if there is no valid will. During this time, assets are tied up as beneficiaries impatiently await their share. Probate can also be expensive and time-consuming. For these reasons, many individuals try to avoid probate through one or more of the following ways.
Read more - Can I Put a Trust in My Will?
Many people choose to have either a trust or a will. However, others may actually include a trust within a will. This is often referred to as a testamentary trust. This type of trust does not go into effect until the testator’s death. Other trusts are set up during the lifetime of the person making it. There are important things to understand about a trust of this nature.
Read more - Importance of Funding Your Trust and What can Happen if You Fail to Do So
Funding a revocable trust is an important aspect of creating the trust and it being valid in the future. If the grantor fails to complete this necessary step, there may be lasting consequences.
Read more - The Disadvantages of a Living Trust
Many financial service providers spout the advantages of a trust, promising that trusts can be used as an asset protection tool and can help your beneficiaries avoid the cost and expense of probate. However, living trusts also carry certain disadvantages with them, which should be carefully considered and weighed against the advantages.
Read more - Three Types of Trusts: Differences and Similarities
Trusts are created usually to assist heirs with managing or acquiring assets that may bypass probate or other legal concerns such as dependents that attempt to challenge a will. Other benefits of trusts may include evading certain taxes, lawyer expenses and keeping the income within the family or with a beneficiary that has been chosen by the estate owner.
Read more - What Are the Uses for a Miller Trust?
A Miller Trust is a special type of trust that adjusts a person’s income downward, usually in an attempt for the individual to retain eligibility for certain types of governmental benefit programs. Most often, these trusts are used for the purpose of establishing eligibility for the Medicaid program.
Read more - Explanations of Irrevocable Trusts
An irrevocable trust is one that may not be modified once it has been created, so it cannot be revoked, amended, changed or altered in any way. Money, property and holdings placed into irrevocable trusts cannot be removed at a later date, so it is important the owner is aware that this is a permanent action.
Read more - How Trusts can help a Person who has a Drug Problem
A trust is a legal document in which the grantor appoints a trustee to hold the legal title to property on behalf of a beneficiary. These effective instruments can help establish guidelines for how an inheritance is used. They can also help protect against interception by a creditor or using inherited funds in an inappropriate manner.
Read more - What Are the Duties of a Trustee?
A trustee is the person who administers a trust. He or she has many duties and obligations to the grantor or settlor of the trust.
Read more - When Irrevocable Trusts can be Modified
Based on the circumstances, it may be possible to modify irrevocable trusts even though they are generally unchangeable. There are five different times when these trusts may be altered to fit the needs of the creator that owns an estate.
Read more - Adding Beneficiaries to a Charitable Remainder Unitrust
Creating a charitable remainder unitrust is not an easy task for an estate owner and determining whether or not to add beneficiaries is something the individual may need to assess. In so doing, he or she may need to fully understand the requirements and how these may affect the future of the trust or other important parties.
Read more - Can a Co-Trustee of a Family Business Trust Eliminate the Other Co-Trustees?
Some family businesses are held in trust which allow trusted trustees to protect the asset so that the business is not adversely affected by family disagreements. The trust document contains specific information and directives regarding how the family business can be ran and provide protections to the business and the beneficiaries.
Read more - Function of Community Property Trusts
A community property trust can protect the interests of a married couple. This in turn allows the spouses to retain a larger value of estates in the family. It is important to understand the legal identification of property and how community property trusts function so that you can protect your legal and financial interests.
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