A trust is a written legal agreement between the individual creating the trust and the person or institution named to manage the assets held in the trust (the “trustee.”) In many cases, it is appropriate for you to be the initial trustee of your living trust, until management assistance is anticipated or required.
REVOCABLE LIVING TRUST
Assets held by a revocable living trust (“RLT”) will avoid the cost, delay, and hassle of probate. The trustee of the RLT will distribute your assets to your heirs privately and without the high statutory fees. By using an RLT, you can ensure that your money is held in trust for the benefit of your heirs under the terms you feel are best. For example, you can provide for your spouse during your spouse’s life, but on that spouse’s death, dictate that the money will go directly to your children, and will not be affected by your spouse’s potential remarriage. You can also dictate the ages at which your child receives his or her inheritance, such as providing that the trust may always pay for health and education, but will not distribute the assets outright to the child until the child reaches certain ages of maturity. Many clients choose to distribute 1/3 of the assets to the child upon reaching age 25, another 1/3 at age 30, and the balance at age 35.
Your living trust can also be prepared so that it allows your spouse or another family member you choose to manage your financial affairs for you if you become disabled or seriously ill. Trusts can also help you take care of those who can’t take care of themselves. You can set up a trust to send grandkids to college, to pay for weddings, and to keep up a family property. You can also provide for the necessities of a family member who you believe is unable of taking proper care of himself or herself, providing asset protection, and can create a Pet Trust, to ensure the care and feeding of your companion animal after you pass on.
We can prepare a living trust for a single person, a married couple, or a non-married couple.
There are many types of irrevocable trusts and they are used for many purposes, including income tax and estate tax savings, asset protection, and wealth preservation and transfer. We can advise you about trusts for minors, life insurance trusts, charitable trusts, grantor retained annuity trusts, and other forms of irrevocable trusts designed to suit your needs.