The creation of a trust is often one of the most integral parts of a person’s estate plan. A person may choose to create a trust for many reasons, either in addition to or in place of a will, along with other estate planning documents. While a trust offers several key benefits that you would not otherwise enjoy by only creating a will, establishing a trust tends to be more complicated and nuanced.
If you are considering the various types of trust options available for your estate plan, you may wish to consult with a Chandler trusts lawyer. A knowledgeable attorney could explain the various steps involved in creating a trust and help you choose the structure that is most efficient for your specific assets and property.
There are several benefits attached to the creation of a trust in Chandler. A trust is established when a person, known as the grantor, creates a document surrendering legal possession and control of their assets into the trust structure. The grantor also appoints a trustee to oversee and manage their assets under the particular terms of the trust. This doesn’t mean you give up control, For example in a revocable trust, you would be the trustee and will have full control of all the assets in the trust.
Upon the grantor’s death, a secondary or successor trustee will manage the administration of the grantor’s estate, including accounting for all the grantor’s assets and paying any outstanding debts and bills. A trustee also handles the distribution of assets to the grantor’s beneficiaries as stated in the terms of the trust. The trustee will also manage the grantor’s assets while the grantor still living.
There are numerous trust benefits that may cause someone to enlist the help of a local attorney. One of the most significant benefits of placing assets in a trust rather than a will is that a trust does not go through the probate process. As such, the creation of a trust can relieve the grantor’s family of the additional stress and lengthy court process frequently associated with probate proceedings.
In addition to avoiding probate, a trust can also be a valuable legal structure to protect the grantor’s assets from certain types of creditor claims. The creation of a trust allows someone to clearly outline how they want their assets to be distributed upon their death, as well as the method of distributing these assets. A trust can also relieve the decedent’s heirs of the obligation to pay specific kinds of taxes and serve as a more productive method of structuring the grantor’s tax liabilities.
When setting up a trust in Chandler, it is important to understand the difference between revocable and irrevocable trusts. When someone creates a revocable trust, this means that they can alter the terms of the trust, add or remove beneficiaries, or terminate the trust and create a new one if they so desire. However, a revocable trust is more vulnerable to debtor’s claims and carries fewer tax benefits than an irrevocable trust.
Irrevocable trust structure offers greater asset protection and tax benefits, but does not allow the grantor to make any modifications after the trust is executed. A Chandler attorney could advise of most advantageous methods of structuring their trust.
A Chandler trusts lawyer understands the complexities attached to the creation of a trust and could help you determine the most beneficial way to plan for your future legacy. An attorney could explore the various benefits and downsides attached to each type of trust and help you make the most suitable decision for your estate plan. Schedule your case consultation with our firm today. We look forward to meeting with you.