A trust is a private fiduciary agreement that allows a person to manage, control, and preserve assets, property, and investments in death. A trust ensures that your assets are protected and distributed among your loved ones according to your wishes when you pass.
Different types of trusts, including revocable and irrevocable, will guarantee your loved ones’ financial stability in the future. Both options have advantages and disadvantages, though they ensure your legacy is carried out and your family can avoid probate court, among other benefits.
What is a Revocable Trust?
A revocable trust is also commonly known as a “living trust.” It’s a popular and effective long-term estate planning option to manage, protect and distribute your assets after death or in the event you become incapacitated.
A living trust also goes into effect immediately once you move assets into it. This means you can transfer assets in and out while you are alive, and the trustee you choose can manage them and preserve the funds when you are gone.
As this is a private arrangement, your assets will be distributed directly to your heirs as intended, and as such, it will keep your family out of probate court. Learn more about revocable trusts and if they’re a right fit for you and your family by contacting our firm: (702) 553-3266.
What is an Irrevocable Trust?
An irrevocable trust is different from a revocable trust. With an irrevocable trust, you cannot change or end the trust after it’s created without a lengthy, complicated process. It is not as flexible as a revocable trust, though it has its advantages:
- Minimize estate taxes
- Become eligible for government programs
- Protect assets from creditors
- Protect assets from lawsuits
- Protect assets from life events such as divorce
Assets, including cash, stocks, life insurance policies, and businesses, can be transferred to an irrevocable trust. An attorney can help you decide between a revocable and irrevocable trust to align with your goals. A lawyer can provide alternative solutions or help you manage the process if you need to alter it.
How Can an Attorney Help Me Start a Trust?
A law firm experienced in estate planning is a great place to start when considering a trust. Our attorneys can help you determine your end-of-life goals and create a trust that preserves your legacy and safeguards your family’s future.
There are several good reasons to consider a trust, from minimizing estate taxes to flexible distribution to probate court prevention.
If you are considering an estate plan or wondering about the best protection strategy for your assets, take the first step and contact our law firm to get planning with a consultation: (702) 553-3266.