Estate Planning is the process of working with an attorney to create a legally-binding plan for what will happen to your personal property and belongings (known as your estate) and remaining money (known as your assets) after you pass away. Preparing an estate plan empowers you to make decisions about your own life that would otherwise be made for you in probate court. Trusts are one of the most popular forms of Estate Planning because they provide people an opportunity to avoid the court-supervised probate process entirely.
Probate can be long, expensive, and emotionally consuming. Creating a Will allows you to dictate what will happen to your estate in probate. Creating a Trust, however, allows you to place assets inside that will avoid this process. At the moment of your death, your named Trustee will be able to gain control of your assets and then be able to transfer your estate to your chosen beneficiary without court interference.
Trusts come in many shapes and sizes, each with their own purposes. Here are several different types of Trusts to help you avoid probate. Each trust also provides other benefits depending on your needs.
The most common Trust is known as a Revocable Trust and is sometimes referred to as a Living Trust. A Revocable Trust allows you to make any changes you desire to it at any time during your life. If you need to add or remove assets, you can. If your relationships have changed and you want to change a chosen beneficiary, you can. When you pass away, the final version becomes locked and set in stone.
True to its name, an Irrevocable Trust is the opposite. An Irrevocable Trust becomes locked as soon as you create it, ensuring your set wishes will remain the same forever. These types of trusts are used to make sure your wishes can’t be changed and for possible tax savings.
A Charitable Trust is a Trust that is passed on to a charitable organization rather than a loved one or an individual. It allows you to make a significant donation that you can spend your life planning for. Charitable Trusts can be created in many different forms for many different scenarios and often provide significant tax benefits.
Get Started Today
This is just the very beginning of the many different types of Trusts available today. To create an Estate Plan that works for you – and has a strong Trust at the center of it – contact Solan, Park & Robello today! We bridge your present to your future.