How A Trust Can Provide For Efficient Management And Transfer Of Assets
Trusts are one of the main cornerstones of estate planning. A Trust is a legal entity created by one party to oversee and care for assets on behalf of a beneficiary. The law allows many forms of Trusts that can be used for a variety of purposes. The importance of proper drafting and funding of Trusts cannot be overemphasized. Clients need to seek competent, comprehensive advice and assistance to fully achieve the health care, financial, income tax and estate planning opportunities available through a Trust.
Delzer, Coulter & Bell, P.A., gives clients and their families reassurance through our attorneys’ qualifications. Board certified attorneys Wayne R. Coulter and Rebecca C. Bell bring their deep understanding of Trust and estate law and elder law to provide you with comprehensive, personalized solutions.
The Basic Structure Of A Living Trust
A Living Trust is the most comprehensive and effective legal tool for avoiding the costs and delays of probate and providing for the management of your assets in the event of incapacity. As the name implies, a “Living Trust” is a Trust set up during lifetime. The trust is revocable and can be changed or canceled at any time prior to death, as long as the Grantor remains mentally competent. The Trust is administered and governed by the terms of the Trust Agreement. The person creating the Trust is referred to as the “Grantor” or “Settlor.” The “Trustee” manages and carries out the terms of the trust. Usually, the Grantor acts as the initial Trustee.
The Trust As Protection Against Incapacity
Probate avoidance is usually the primary objective of persons creating a Living Trust. However, estate planning professionals find the safeguards and protection that Living Trusts provide against the problems of incapacity to be of equal, or possibly even greater, value to Living Trust clients. Few recognize the significant possibility of long-term incapacity prior to death.
Other Trust Options
As previously stated, Living Trusts are not the only types of Trust. We can review all appropriate options, such as:
- Testamentary Trusts – You can choose to have a trust established upon your death for one or more of your beneficiaries through your will or living trust.
- Generation-Skipping Trusts – Skipping a generation through one of these Trusts can save on estate and gift taxes.
- Special Needs Trusts – If you have a disabled loved one who depend on government benefits, this special type of Trust can help provide for them without jeopardizing those benefits.
- Charitable Trusts – If leaving a financial legacy to a charity is important to your plan, you may want to consider a Charitable Trust.
These are only a few examples of Trusts that may help you achieve your estate planning goals. We are here to help you tailor your plan to fit your specific legacy goals.