Trusts are a popular form of estate planning—and for good reason. These tools simplify the process of distributing assets when a person dies. Often, relying on trusts allows someone’s beneficiaries to avoid probate and ensures their final wishes are met.
When you are considering trust formation, speaking with an experienced estate planning attorney is in your best interests. A legal professional can help you navigate this complex process without the missteps that might put your plan at risk. Let a New Bedford trusts lawyer guide you.
There are multiple kinds of trusts a New Bedford attorney could help with. Which type of trust one chooses depends on the needs and wishes of the person creating the trust. Some varieties of trusts include:
Revocable trusts are especially common. Every aspect of a revocable trust can be modified during the lifetime of the trust creator, including changing beneficiaries, modifying the awards, or even revoking the trust altogether. Typically, any modification requires notifying the beneficiary of the trust.
As the name suggests, once created, irrevocable trusts cannot easily be altered or revoked. Giving away this flexibility typically comes with benefits such as significant tax advantages. There are limited grounds for altering irrevocable trusts and the court must approve any changes.
A special needs trust is a type of irrevocable trust that lets a disabled beneficiary use or otherwise benefit from property in a trust, while still allowing them to receive essential needs-based government benefits.
The purpose of a charitable trust is to provide certain charitable interests with financial support, either now or in the future. A charitable leads trust allows a charity to receive interest payments from a trust while the trust creator is still alive; when they pass away, the remainder of the trust goes to that person’s heirs. A charitable remainder trust differs slightly in that the remainder of the trust also goes to the charity after the creator’s death.
When successfully created, trusts take over the ownership of important assets for the trust creator. Considering the effect this can have on the finances of the trust creator and their beneficiaries, there are strict legal requirements for the formation of a trust. A New Bedford trusts attorney could help people and their families meet these requirements.
First, trusts must name one or more beneficiaries. Beneficiaries are people or groups that will inherit the assets held by the trust. In most situations, the death of the trust’s creator determines when this transfer of assets occurs. The person appointed to oversee this process is known as the trustee. The trustee ensures the terms of the trust documents are followed and protects the interests of the beneficiaries.
While one person can be both a beneficiary and a trustee of a trust, they may not act as sole beneficiary and sole trustee at the same time.
While trusts are a powerful tool in the estate planning process, any mistake made when setting them up can have a ripple effect across multiple generations. Given what is at stake, seeking help when creating a trust is vitally important. Reach out to a New Bedford trusts lawyer for the assistance you deserve.
