Do I need a Trust?
Wills & Trust Laws NH
Revocable and Irrevocable Trust Defined
Many of you may know that having a living trust is very important. But did you know there is more than one type of living trust? There are in fact two major types of living trusts and knowing which one is best for you can be confusing. Both the revocable trust and the irrevocable trust are great estate tool that can help you protect your assets and the ones you love. But what is the difference between the two?
• The irrevocable trust gives control of the assets to the grantee. This type of trust cannot be easily dissolved and once the assets are moved they are no longer the legal property of the grantor. There are many reasons why one may chose this type of trust and we will go into further detail below.
• The revocable trust remains in the hands of the grantor and all property is still owned by the person who enacted it. This trust can be dissolved at any time and it is less strict than the irrevocable trust. This is great for someone who wants to remain in total control.
Cases Where a Revocable Trust is better
Some of the reasons one might choose to enact a revocable trust can be based on their medical background. For those who are facing dementia or have a long family history of the condition might find this trust the best. If they become unable to handle their assets someone else can be appointed to take over for them. Also, this trust is best for those who have small estate that aren’t subject to many tax liabilities.
Cases Where an Irrevocable Trust is better
If you are someone who has a large estate that is subject to a large tax bill an irrevocable trust can help ease that burden. The federal estate tax can be very harsh but placing your assets in an irrevocable trust will make them exempt from this tax burden. Capital gains taxes can also be avoided if placed in this type of trust. Also, this type of trust will protect your assets from creditors, lawsuits, leans and garnishments.
Hiring an Estate Attorney Will Help You Figure All This Out
Understanding all of this legal information can be a bit overwhelming so hiring an estate attorney can really clear things up. Here at Law Office of Mike J. Demers, PLLC we can guide you through the legal process.
For more information on trust laws and the process in New Hampshire, contact us today for a free consultation!