Creating a comprehensive estate plan is critical to making sure that upon passing, your assets end up exactly where you want them to be. One of the major components of an estate plan for many people is to create a trust. There are a few different kinds of trusts that should be considered to determine which is best for your particular situation. If you need an experienced legal team with the knowledge and compassion necessary to create an estate plan, Collis, Griffor & Hendra is ready to help. To schedule a consultation with a skilled wills, trusts, and estates attorney, contact Collis, Griffor & Hendra today.
What is a trust?
A trust is a legal means of managing certain assets. There are many reasons to create a trust. Many individuals desire a trust to avoid probate. It can also help protect from spendthrift beneficiaries, disabled beneficiaries, and control funds long after one’s death. The person who creates the trust is referred to as the trustor or the grantor, while the person who inherits from the trust is referred to as a beneficiary. Additionally, the person placed in charge of managing the assets of the trust is referred to as the trustee. Trusts often result in tax benefits, which is one of the many reasons they are so popular.
Different Kinds of Trusts in Michigan
As mentioned, there are several different kinds of trusts that can be considered when creating a comprehensive estate plan. A few options are as follows:
- Revocable Living Trusts- A revocable living trust is established during your lifetime, allowing you to manage it until you become incapacitated or pass away. After that, a Successor Trustee that you have chosen will take over management and will distribute the assets in the trust upon your death.
- Irrevocable Trusts- An irrevocable trust can only be modified or terminated with permission from the beneficiary. The trustor loses all ownership rights to the assets once they have been placed into the trust.
- Special Needs Trusts- Also known as a supplemental needs trust, a special needs trust allows individuals to hold an unlimited amount of assets in trust for an individual with special needs precipitated by certain illnesses or physical or mental disabilities.
- Charitable Trusts- A charitable trust exists to allow you to continue making donations to an organization. This can also provide great tax benefits to reduce the amount of the taxable estate.
Of course, everyone’s financial situation is different, but it is never too early to start planning for the future. If you are wondering how a trust can benefit you, speak with an estate planning attorney.
Contact a Washtenaw County, MI Trusts Attorney
If you are beginning to think about your estate or have questions about your existing estate plans, it is important that you consult with a legal team that has what it takes to provide you with quality assistance. At Collis, Griffor & Hendra, not only do we have experienced attorneys, but we also have financial experts on staff who can assist you with your trust. Contact Collis, Griffor & Hendra today to learn how we can help.
