Creating a trust is an effective tool when beginning the estate planning process. If you have funds you wish to leave to beneficiaries and wish to have a real say in how and when those funds are used, a trust may be your best option. If you are ready to outline your wishes for all you have worked for, let the estate planning attorneys at Mike J. Demers, PLLC, explain the benefits of creating a trust or will as part of comprehensive estate planning.
A trust is way of designating a certain amount of money to a specific person. While giving money to a beneficiary through a will is common, there are certain benefits to creating a trust instead. If you leave funds through a will, once the probate process is complete, the estate administrator simply gives over the funds. With a trust, you can avoid the probate process and also the taxes that go along with leaving money through a will. A trust is also a private option, as opposed to the details of a will, which is public information. You can also put stipulations on a trust as opposed to a will. For example, there can be an age the funds are given over to a beneficiary or a life event, such as when that person marries, buys a house, or has children.
Types of Trusts
There are several types of trusts. The two most common types are a revocable trust and an irrevocable trust. A revocable trust is also known as a living trust as it can be created and modified throughout a person’s life. The creator can change it any time, including de-funding it altogether. New stipulations can be added at any time, which may be needed as circumstances or families change due to divorce, births, or personal problems. An irrevocable trust is untouchable after it is created. This is helpful for those who are worried about taxes or funds that could be diminished in other ways. It also keeps funds safe from creditors, unlike the probate process.
Trusts can be a useful estate planning option for just about anyone. Our firm can sit down with you and discuss your options and help you navigate all aspects of trust creation. Attorney Mike J. Demers, understands the personal nature of creating trusts and we also understand the importance of protecting all you have worked to create for your family. Let us answer your questions and explore the possibilities of what kind of trust may work best for your needs.