A Brief Introduction to Trusts and Trust Attorneys
There is a common misconception that trusts are only for the rich, which is not true. The truth is, trusts are for anyone looking to prepare for the worst and wanting to care for their family’s well-being should they pass away.
Does the description match you? If so, you may want to look into trusts and their many forms before working with a trust attorney.
Understanding a Trust
In general, trusts are an estate planning tool put in place to benefit specific individuals. It is like a separate bank account with a beneficiary listed and can be an excellent solution to help reduce taxes while also preserving and growing your estate.
The types of trusts one can make include the following:
1. Living Trusts
A living trust is a trust set up by the grantor during their lifetime. The grantor is the individual who creates the trust.
Upon the grantor’s death, the property gets distributed to the beneficiaries with no need for probate. Living trusts are a prevalent type of trust for individuals looking to protect assets.
2. Irrevocable Trusts
Irrevocable trusts are similar to living trusts in that a grantor also sets them up and are effective upon their death.
However, unlike the living trust, the grantor does not have the power to take the assets back or revoke the trust without explicit agreement from the beneficiaries.
3. Revocable Living Trust
As its name suggests, a revocable trust is a living trust that the grantor can revoke or change at any time.
The property is still available to the grantor while they are alive, and upon the grantor’s death, the assets get distributed to the beneficiaries.
4. Testamentary Trusts
The primary purpose of testamentary trusts is to ensure that one’s estate gets distributed in a certain way upon death. The estate plan is created in a will or testament and is usually in place to preserve family relationships and avoid probate.
You can create a testamentary trust with the help of a trust or estate planning attorney.
5. Charitable Trusts
A charitable trust is created to support a charity or help a specific cause. They are not typical in the United States and are more commonly used in other parts of the world.
The trust’s purpose is to distribute the income earned to the charity and use the remainder of the income and assets to replace or grow the number of assets in the trust.
How Can a Trust Attorney Assist You with Your Trust?
Trusts are versatile personal estate planning tools that can help protect your family’s future by avoiding probate and reducing your family’s tax burden.
With that said, working with a trust attorney can help you understand why you should make a trust and help you sign one correctly. They are familiar with all kinds of trusts and can assist you with yours accordingly.
What Do You Look for in a Trust Attorney?
Trust attorneys have a deep knowledge of the different types of trusts, including those mentioned above. The most important skill to look for in a trust attorney is proven experience.
When hiring a trust attorney, look for someone who can answer your questions and address your concerns. Remember to trust your instincts, as getting an uneasy feeling about an attorney is likely rooted in something you can’t pinpoint.
A Trust Attorney You Can Put Your Trust In
Estate Planning Lawyers Colorado is a firm of estate planning and trust lawyers in Colorado. Our team consists of experienced lawyers ready to сounsel, advise, and assist you with your trust and estate planning needs. Give us a call today to schedule your consultation.