There are many different types of trusts that you could create as part of your estate planning and incapacity planning. You can also create trusts to provide protection for assets or loved ones. Trusts are a versatile and powerful legal tool that many people do not fully understand. Trusts can work effectively to achieve many of your goals for securing your legacy and making sure your loved ones are cared for. You just know how to use a trust properly.
The Law Offices of James A. Miller, P.C. can provide you with guidance on types of trusts and on how different trusts can work for you. To find out more about how to select a trust and how to create a legally valid trust that offers you expected benefits and protections, give us a call today to talk with a Worcester trusts lawyer.
Factors to Think About When Choosing Among Different Types of Trusts
When you consider trust creation, the first thing you will realize is that there are way more options for different types of trusts than you may have been expecting.
You will have to decide between revocable trusts and irrevocable trusts. You’ll have to consider if you need a specialized type of trust, such as a special needs trust or a spendthrift trust. You will have to think about what goals you are hoping to accomplish and select the trust type that will work well for you.
Some of the key factors that you need to think about when deciding among different types of trusts so you can create the right one include:
- Whether your heirs have any special needs. If you are leaving money to someone who is disabled, for example, you want to make sure that you select a trust that will allow continued access to Medicaid benefits. If your heirs are not responsible with money, they are under 18, or you are worried they will end up divorcing, there are different kinds of trusts appropriate for these situations.
- What kinds of assets you want to transfer into the trust. When you create a trust, you must fund it with the assets that you are hoping the trust will protect. You have to consider the implications of transferring assets into the trust, both in terms of what the transfer can mean for taxes and also in terms of how the transfer will impact things like mortgage loans on property.
- What degree of control you want to maintain over trust assets. If you are hoping to create a trust that is going to put your wealth out of reach of creditors and protect your assets in case you need nursing home care, you may need to make an irrevocable trust and give a trustee control over the wealth. If you make an irrevocable trust, you have to give up a lot of your day-to-day control over managing the assets that you have put into the trust.
- What the purpose of the trust is. You may have a lot of different motivations for trust creation, from protecting assets during your lifetime in case of incapacity to trying to use the trust to reduce the amount of estate tax that are going to have to be paid. Not all trusts will provide the same kinds of protections and benefits, which means you could end up creating a trust and not achieving what you had hoped. If you work with an experienced attorney who can help you pick the right kind of trust to make, you will not have to worry about that issue.
Zimmer Law Firm can provide you with assistance in understanding what each of the different types of trusts can do and can help you to select the best trust to meet your needs. When you have chosen the trust that is right for you, our legal team will help you to follow all formalities for trust creation.
Getting Help from A Worcester Trust Creation Lawyer
Creating a trust is something that many people should do to provide protection for their families, to make sure they have appropriate control over an inheritance, and so they can provide for their loved ones. You need to decide on the best trust type and work with an experienced attorney to ensure your trust is legally valid.
To learn more about different types of trusts and about the role that trust creation can play in your estate planning, download a free estate planning worksheet. You can also give us a call at 866-370-3888 or contact us online to get personalized advice about how trusts can fit in to your estate plan.
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