Q: Can a trusts attorney help me understand the different types of trusts?
Yes, a trusts attorney can explain the various types of trusts, including revocable, irrevocable, and special needs trusts, helping you choose the right one for your needs.
Q: Why should I have a trust?
Having a trust is essential for several reasons:
- It allows you to specify how your assets should be managed and distributed after your death.
- It can help avoid probate, making the distribution of assets faster and more efficient.
- A trust can provide for minor children or dependents, ensuring their needs are met.
- An irrevocable trust might help you avoid estate taxes if you have millions of dollars in assets.
Q: What's the purpose of a revocable trust?
A revocable trust is a legal document that allows you to retain control over your assets during your lifetime while specifying how they should be distributed after your death. You can modify or revoke the trust at any time, providing flexibility.
Q: What happens if I establish an irrevocable trust?
Unlike a revocable trust, an irrevocable trust can't be modified or revoked once it's established. You'll lose control of the funds in the trust—they can be distributed only per the terms of the trust. This type of trust often is used to avoid estate taxes and to protect assets from creditors, but it requires careful planning and consideration.
Q: What does it mean to fund a trust?
Funding a trust means transferring ownership of assets from yourself to the trust. Creating a trust document is the first step of establishing the trust. To complete the trust, you'll need to put property in it. A trusts attorney can help you transfer property into the trust.