Creating a trust is an excellent way to avoid probate after your passing, but it’s important to correctly set up a trust so that there aren’t objections or issues that could cause major headaches. There is often a lot of mystique surrounding trusts, and many people don’t want to discuss a trust with their lawyer because they don’t understand it. However, it can be an invaluable document to have for your family members and loved ones to have and use after your death. In this post, we’ll discuss what a trust is and why you need one. Don’t forget to contact Brian Loomis for all of your trust needs and advice. With more that 10 years of experience, I’ll do my best to help you to write the type of trust that you need so you can give your family and yourself peace of mind. Give my office a call today to set up an appointment!
If you’re interested in setting up a trust to help distribute your property after your passing, you have a lot of options. It’s important to understand what you’re interested in and the stipulations that you want to specify so that you can be sure that your wishes will be respected by your family members. For this reason, it’s essential to meet with a lawyer who has experience in writing trusts. Some of the reasons that a trust is an excellent choice for your family if you own a lot of property or valuable items include:
- Control of inheritances
- Avoiding probate
- Management during incapacity
- Protection from greedy individuals or family members
This can be a great comfort to those who are worried about being incapacitated due to illness or an accident. In a later blog, we’ll define and discuss the different types of trusts and how to choose the right one for your needs and requirements. For now, we’re simply discussing what a trust is and why it’s so important for you to set up later on in life so that any inheritances or property will be properly distributed to those who you’ve chosen.
Setting Up a Trust
Once you’ve chosen the right trust for your needs, you need to discuss with your lawyer who you should appoint as the trustee for your trust. This individual needs to be reliable, understanding, and have your best interests and wishes at the forefront of his or her decision making process. Often, this person is a spouse or closely-related family member. A trustee manages and carries out the duties of maintaining the trust. This power is limited by the trust and the trustee can’t make big decisions without your approval. Further, the trustee will be required by the law to carry out your wishes and requirements. This will protect your assets and finances from being wrongfully used or distributed to individuals who aren’t listed as beneficiaries. You also should choose those who will receive certain items or sums of money to ensure that they’ll receive them once you are deceased. This will keep disagreements and arguments down to a minimum and protect your assets from being wrongfully distributed. You can be as specific as you need or would like, so if you want your emerald engagement ring to go to your sister, it’s important to have that written in the trust so the trustee will know that information.
Funding the Trust
Cash, assets, or property can all be placed under a trust. Once everything has been transferred, these items or finances become part of the trust estate. Depending on what you want to keep in the trust, these items can continuously be updated to be included in your trust. If you do use your investments or investment property to fund your trust, it’s essential to include that information with the trust so the trustee will be fully advised of all of the details needed to complete his or her duties.
A trust is a valuable estate planning tool and will help to put your mind at ease for the future, whatever it may hold. If you’re ready to create a trust, contact The Law Office of Brian Loomis. Brian looks forward to working with you!