A living trust is a created during your lifetime in order to provide for the distribution of some of your assets during your lifetime and after your death. A living trust has a “Trustee” who is in charge of the trust and one or more “Beneficiaries” who benefit from the trust. A testamentary trust can be created in your last will and testament to provide for a number of persons and circumstances. The most common types of trusts are:
Revocable Living Trusts
Irrevocable Living trusts
Medicaid Asset Protection Trusts
Special Needs Trusts and
Pooled Income Trusts.
Each trust has a specific purpose and use. Revocable trusts are useful when there is no reason to remove an asset from your possession or no foreseeable liability. They are often used to transfer an asset outside of an estate, to avoid the costs and inconveniences of Probate. Irrevocable Trusts, of which medical, special needs, and pooled income trusts are a part, are useful in certain circumstances to protect assets from future or present liabilities.
There are many circumstances in which you would establish a trust. Perhaps you want to ensure that your family has quick and easy access to assets when you pass away. Perhaps you want to ensure that future creditors cannot access assets for any now unforeseeable reason. If you are thinking about establishing a trust, or estate planning in general, schedule an initial consult today or call us to speak with an attorney.