Trusts – Leaving More for Your Family
A Trust fund account is a legal safeguard for your assets. Understanding the various types of Trusts can ensure that your legacy is left to those you love.
Safeguarding your assets through Trusts
A Trust is a legally binding agreement among three parties: the Grantor (the person creating the trust), the Trustee (person managing the Trust), and the Beneficiaries of the Trust. By creating a trust, you are establishing a Trustee as the manager of the funds, stocks or other assets on behalf of the designated beneficiaries.
Understanding Types of Trusts
There are two basic categories of Trusts: Revocable and Irrevocable
A revocable trust is like a balloon tied to a string. It leaves some personal connection to the assets in the account and can be pulled back (revoked) if desired. Since it can be revoked, the Grantor may be the Trustee on behalf of the beneficiaries.
An irrevocable trust is more like a helium balloon with no string. All personal access has been removed, the Grantor cannot be the Trustee and the trust itself cannot be revoked. The Grantor no longer owns the assets in the Irrevocable trust, so the administration of the trust is solely under the discretion of the Trustee once it has been established.
How to choose your best Trust option
The attorneys at Ament Law Group have the expertise and experience to help you choose the best option for you and your heirs. Some questions to consider before a free consultation may include:
• Do you have a trustee in mind?
• Are you interested in decreasing your net worth for tax purposes?
• Do you have children or grandchildren you would like to provide for?
• Do you want to control how and when funds are allocated to your designated beneficiaries?
• Do you want to define the types of expenses your trust funds would cover?
• Do you have a family member with special needs you would like to provide for?
• Do you want to provide for someone with mental illness or behavioral health concerns?
• Do you have an elderly parent or sibling you would like to provide for?
• Do you want the ability to revoke the trust if circumstances should deem in appropriate?
Regardless of your net worth, a Trust may be an important part of your estate planning considerations. As you might have guessed, there are a myriad of trust options, some revocable and others irrevocable, that meet the specific needs of any given circumstance. Having a trust in place when you pass protects those assets from additional tax burden and makes sure more of your assets get to those you care about.
Contact us today to discover your best Trust option.