Wills And Trusts Attorneys Committed To Protecting Your Future
Last updated on July 3, 2024
If you’re considering estate planning, understanding the importance of wills and trusts is a good place to start. These essential tools can help establish a solid estate plan, though only a will is necessary for everyone. Learning how these two tools can protect your assets and loved ones is the first step in building an estate plan.
Our experienced attorneys at Deal Moseley di Santi Garrett & Martin, LLP, can help you through the steps of creating a will or trust – or both.
Wills Versus Trusts: Understanding The Basics
Wills and trusts often get lumped together when discussing estate planning, but they have different functions.
A will is a document that outlines the distribution of your assets and property after your death. You can determine whether to pass assets to your heirs, friends or charitable organizations. A will can also establish crucial details regarding how you want your funeral carried out, who should be your estate’s personal representative and who should be the guardian of any minor children.
On the other hand, a trust is a contract designed to pass your property and assets to beneficiaries without subjecting the beneficiaries to probate. As the person creating the trust (known as the trustor or grantor), you can place money and property in a trust and then choose someone (known as a trustee) to manage the trust. The trustee is then responsible for transferring assets to your beneficiaries according to the directives of the trust.
What Are The Different Types Of Trusts?
There are two main categories of trusts: revocable or living trusts, and irrevocable or testamentary trusts. As the name suggests, a living trust is active while the grantor is alive. Living trusts can be used to transfer assets to beneficiaries while the grantor is alive and after they pass away. Living trusts are easy to change or cancel. Testamentary trusts don’t become active until the grantor dies and cannot be changed without the permission of the beneficiaries.
Other Uses For Trusts
There are dozens of different kinds of trusts used for different purposes. The main reasons most people come to our firm to create a trust are to avoid probate, protect assets and minimize taxes. Using a trust to provide for minors or people incapable of taking care of themselves is also a common reason for creating a trust. Other types of trusts include:
- Credit shelter trust
- Education trusts
- IRA trusts
- Medicaid planning trusts
- Charitable lead trusts
- Asset protection trusts
No matter what type of trust you might need, you should be aware that trusts can be customized to meet your specific needs and goals. Our attorneys always consider whether a trust is appropriate for our clients when going through estate planning.
Let Us Help You On Your Estate Planning Journey
Creating a will is a crucial part of estate planning, and trusts offer a great way to protect your assets and spare your beneficiaries the hassle of probate.
To discuss whether a trust is appropriate for you, call Deal Moseley di Santi Garrett & Martin, LLP, at 828-263-4721 or fill out our online contact form today.