 |
A 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.
-
Avoiding probate which can save some time and money.
-
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.
If you have questions about any aspect of estate planning and what we can
do for you, please contact us. |