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Trust is an estate planning tool that allows one or more persons (the
Trustees) to hold and manage property for the beneficiaries of the
Trust. If the Trust is created by your will, it is called a
Testamentary Trust and it is created after your death. If the Trust is
created while you are alive, it is called an inter vivos or Living
Trust.
There
are different types of Trusts that serve different purposes. Your
estate planning attorney will be able to educate you about Trusts and
recommend the best estate plan for you. Some types of Trusts include:
Revocable
Living Trust
Irrevocable
Trust
Irrevocable
Life Insurance Trust
Irrevocable
Education Trust
Special
Needs Trust
Generation-Skipping
Trust
Tax
Planning Trust
Bypass
or Credit Shelter Trust
Marital
Deduction Trust
Normally,
you will serve as trustee of your trust or you can have one or more
responsible individuals, a bank's trust department, or an independent
trust company serve as trustee. It's totally up to you.
The Main Advantages of a Living Trust
*
If you need to have someone else manage your property and pay your
bills in case of illness, the Living Trust is a good arrangement.
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Avoiding probate which can save some time and money.
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Because a Living Trust is not filed in Court, its provisions are
private. This differs from a Will, which must be filed with the Probate
Court and becomes a public document.
The Main Disadvantages of a Living Trust
*
Compared to a Will, there are usually more initial costs in setting up
a Living Trust. This is because a Living Trusts generally requires more
extensive and complex drafting.
*
Another disadvantage is the time needed to assure the proper “funding”
or re-titling of probate assets in the name of your Living Trust.
We
know that your children and your assets are important to you. If you
wish to ensure your children are fully protected and to take control
how your assets will be managed, protected, and distributed, start now
by contacting the Kinsey Law Group.
To
learn more about how we can help you, please feel free to explore this
website and our blog.
Use the "Contact Us" link above to send us any questions you may have
or to
make an appointment.
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