Trusts
“Always plan ahead. It wasn’t raining when Noah built the ark.” — Richard Cushing
There are many reasons to use a trust when preparing your estate plan, and there are various types of trusts, each of which has its own advantages and disadvantages, depending on your particular financial and family situation.
What Is A Trust And Who Is It For?
Trusts provide legal protection for your assets and set terms for the way assets are to be held, gathered, and distributed in the future. The ability to set the precise terms for assets you own today is what distinguishes this from other estate planning tools.
A Few Key Benefits of Trusts:
How Do I Create A Trust?
The trust agreement is the actual document that formalizes the trust. The agreement lists the assets, specifies the parties (trustees, successor trustees, and beneficiaries), and lays out the provisions to formalize your wishes. Provisions of a trust agreement usually contain two sets of instructions. The first set of instructions describes how the trust will operate during your lifetime and the second describes how it will be managed after your death. If a married couple set one up together (as they would in a “joint trust”), a third set of instructions may be included to describe how it will be handled on the death of the first spouse.
Executing and Funding the Trust
Once you have a completed trust agreement, you will need to have the documents signed and notarized. Any property you want to be covered must actually be transferred into the trust. For any titled property, you need to have it retitled in the name of the trust by a deed. For other property, you need to execute an assignment of that property to the trust. You won’t place retirement accounts or annuities into the trust; simply make sure that the beneficiaries of those accounts are adjusted in order to operate in coordination with your trust.
Consult With An Estate Planning Attorney
If you want to know more about how trusts can fit into your estate plan, if you would like your current plan reviewed, or you have recently gone through a major life change, you should contact our office.
Have questions? See here or contact us today!
What Is A Trust And Who Is It For?
Trusts provide legal protection for your assets and set terms for the way assets are to be held, gathered, and distributed in the future. The ability to set the precise terms for assets you own today is what distinguishes this from other estate planning tools.
A Few Key Benefits of Trusts:
- You can avoid probate.
- They can allow you to transfer assets without incurring huge tax burdens.
- Gives you significant control over how your assets are used after you are gone.
- Can protect assets from creditors.
- They can even be used to help create or preserve eligibility for public funds when your assets or income might otherwise render you ineligible.
How Do I Create A Trust?
The trust agreement is the actual document that formalizes the trust. The agreement lists the assets, specifies the parties (trustees, successor trustees, and beneficiaries), and lays out the provisions to formalize your wishes. Provisions of a trust agreement usually contain two sets of instructions. The first set of instructions describes how the trust will operate during your lifetime and the second describes how it will be managed after your death. If a married couple set one up together (as they would in a “joint trust”), a third set of instructions may be included to describe how it will be handled on the death of the first spouse.
Executing and Funding the Trust
Once you have a completed trust agreement, you will need to have the documents signed and notarized. Any property you want to be covered must actually be transferred into the trust. For any titled property, you need to have it retitled in the name of the trust by a deed. For other property, you need to execute an assignment of that property to the trust. You won’t place retirement accounts or annuities into the trust; simply make sure that the beneficiaries of those accounts are adjusted in order to operate in coordination with your trust.
Consult With An Estate Planning Attorney
If you want to know more about how trusts can fit into your estate plan, if you would like your current plan reviewed, or you have recently gone through a major life change, you should contact our office.
Have questions? See here or contact us today!
Material presented on the Pearson Law Office, LLC website is intended for informational purposes only. It is not intended as professional advice and should not be construed as such.
Pearson Law Office, LLC., 5720 W. 120th Ave., Suite 3, Broomfield, CO 80020
phone: 720-514-9529 fax: 720-523-0725 email: [email protected]
Pearson Law Office, LLC., 5720 W. 120th Ave., Suite 3, Broomfield, CO 80020
phone: 720-514-9529 fax: 720-523-0725 email: [email protected]