Trusts are created to hold assets instead of keeping them in your name. Trusts allow you access to your property throughout your lifetime and can often be used to distribute your wealth or hold the family wealth for your spouse, children and any other named beneficiaries.
Trusts can help you maintain control over your assets and make changes to a trust throughout your lifetime. By setting up a trust, you may be able to reduce estate tax liability, protect your assets as well as avoid costs for probate proceedings.
There are two types of trusts: revocable and irrevocable. A revocable trust in created by the grantor and controlled by the trustee. Most of the times, the grantor and trustee are the same. If a married couple wants to, they may create a joint revocable trust where they are both the grantors and trustees. This type of trust is always revocable, hence the name, and may be revised in the future. It helps protect the assets from extra costs and extensive proceedings upon the grantor’s death.
A second type, the irrevocable trust, cannot be changed by a grantor. This type of trust transfers assets permanently to another person. An irrevocable trust are often used to transfer wealth among family members in an effort to protect the family wealth and protect it from any outside parties.
In establishing a trust, the grantor must sign a written document detailing the operation of the trust, appointing the trustee and naming who will benefit from the trust. An irrevocable trust appoints a separate trustee or multiple trustees to control the trust under pre-stipulated guidelines.
If you are considering setting up a trust, you want to work with someone who has your best interests at heart and will protect your assets for your family. Call our offices today for your free, initial consultation.