Making a trust can be a confusing decision, but it is beneficial for many people. Trusts are one of the most commonly used tools in estate planning, so it may be right for you to consider. It is one of the most efficient ways to make sure that your assets are protected, or pass down assets to your loved ones. A trust offers many advantages and there are many types to choose according to a skilled trust lawyer from our friends at Kaplan Law Practice, LLC.
Understand your reasons for establishing a trust
It helps to determine your reasoning for establishing a trust in the first place. Are there certain assets that you want to protect or set aside for a family member or loved one? It is a good idea to put certain assets like bank accounts or insurance policies in a living trust for example. Once you have an idea of why you can benefit from creating a trust, you can move forward with how to set one up. If you are unable to decide, a trust lawyer can assess your case and determine whether a trust may be in your best interest.
You want to pass down asset to loved ones
One of the biggest hassles that many people face when they want to pass down certain assets to loved ones is deciding the best way to do so. Forming a trust is one way to efficiently transfer your assets to specific individuals like family members or other loved ones. It eliminates the burden on surviving family members because they don’t need to do extra work to figure out how to obtain the assets in their name. When you choose to set up a trust, you can decide key factors such as whether you want to be able to make changes to the trust or not.
Weigh the pros and cons of types of trusts
There are a number of trusts to choose from, and each has different conditions. Some can be changed when necessary, while others are permanently established. A revocable living trust is a popular kind of trust that can be changed while the individual is alive. In contrast, an irrevocable trust is one that cannot be modified unless the individual receives permission from the named beneficiaries. Once an irrevocable trust is set up, you will no longer be able to control it.
Determine who will manage the trust
Decide the person that you will give legal authority to manage your trust. They will be known as the trustee. This should be a person that you completely trust to respect your wishes, has the responsibility to fulfill their legal obligations, and is medically capable of fulfilling this role. They will have the authority to oversee your trust and manage the assets within it.
If you have questions or need specific information about setting up a trust, request a risk-free consultation with a top-rated lawyer right away.