When you are planning your estate, you may want to make sure that your beneficiaries are able to have the money they need as long as possible and may be able to avoid some tax penalties. There are several ways to do it. One way is to set up a trust. There are several kinds of trusts that you can set up when you are planning your estate.
A trust is a financial tool. It lets you decide how to handle your property. When the fund is created, a trustee is named. The trustee is the one who makes the decisions about the trust, within the regulations of the trust. When you pick a trustee for your trust, you want to make sure that you are picking someone responsible who is familiar with the law around trusts and financial matters. For example, you may want to pick a trust lawyer or a trustee agent at your bank. Doing that will mean that there is less risk of the trust being mishandled or poor decisions being made. While there are a lot of different kinds of trusts, they break down into two categories, revocable and irrevocable.
Revocable trusts can also be called living trusts. Basically, they are set up so that they benefit you. They are only going last your lifetime. You can revoke the trust at any time, which means that you are taking control of the trust away from the person who is your trustee and close the trust down completely. A revocable trust can also be changed during your lifetime, meaning that the terms of it can be altered in order to adjust to things like fluctuating market circumstances or if your circumstances are changed.
With an irrevocable trust, nothing at all gets changed. Once the terms of the trust are set up, the trust doesn't change at all. No properties can be transferred in or out of it. Nor can you adjust beneficiaries or change the requirements. These trusts are generally set up for your heirs and will go into effect after you have died and are part of your will.
Trusts are one way that you can control your money both before and after your death. The trust can make sure that your heirs don't fight over your money after your death because the terms are already set up and can't be changed. For more information, contact companies like Wright Law Offices, PLLC.Share