There is a misconception that trusts are only for the rich. This could not be farther from the truth. Trusts can benefit individuals with children, those with health issues, if you own property in another state or have a personal desire to keep your finances private and out of the public probate court system.
Trusts can also be a very important part of your estate plan. Your Minneapolis estate planning lawyer will help you set up trusts. For instance, you may wish for money or property to be placed in the hands of a trustee who will then ensure the property is used to the benefit of a beneficiary. You determine how the trust is used.
Basically, a trust can protect beneficiaries from spending their inheritances, but can also help in tax planning since inheritances are subject to certain tax laws. Trusts also help you manage assets, keep your affairs private, and avoid court supervision. Overall, a trust determines who gets your property during and after your life.
A Revocable Trust is created by an individual and can be changed, amended or rescinded at any time while the individual is living and competent. A Revocable Trust has a great deal of flexibility in life and in death. It keeps your affairs private and also keeps your estate out of probate. While your will is a matter of public record after you die, your trust is not generally exposed to the public.
Many individuals are seeking out their Minneapolis estate planning attorney to create Revocable Trusts because they are seeing the usefulness of them. Even with just a will, the property division process can be difficult. The trust takes probate court out of the equation and may result in lower administration fees.
The Revocable Trust Lifecycle
A Revocable Trust has a lifecycle and that lifecycle has four basic periods. They include:
Formation – Your attorney creates the trust and your assets are then transferred to it.
Asset Management – You continue to manage your assets, but they are titled to your trust rather than your name individually.
Asset Management During Incapacitation – You appoint a trustee or co-trustees to take care of your trust if you are to become disabled.
After Death – It is after death in which the Revocable Trust becomes irrevocable. Your trustees will then carry out your wishes and any property left will be distributed according to your trust specifications. This distribution happens rather quickly and much faster than if you had just a will since the probate court is not needed.
Contact Eastlund Hutchinson at (952) 894-6400.