Developing a trust is a process best left to our trust attorney Memphis, TN residents rely on. When developing an estate plan, a trust may be a viable option for many reasons. Trusts can offer vast benefits; however, before choosing a trust, you will also want to have a clear understanding of the disadvantages. Wiseman Bray Attorneys can provide critical guidance in helping families make crucial decisions regarding developing trust. Several trusts can be chosen depending on your needs; however, we have outlined information about developing a living trust during the estate planning process.
What is a Living Trust?
A living trust is a document outlining your final wishes, including plans for your assets and how they will be distributed to beneficiaries. A will does not take effect until after your passing, while a living trust can take effect long before you are gone. There are two types of living trusts:
Revocable Living Trusts
A revocable living trust can take effect immediately and is controlled by you. This gives you the ability to make changes to designations and change stipulations as you see fit. In most cases, the grantor will have control until they pass away or become incapacitated. At this point, the contents will become the property of the trust, and the appointed successor trustee will oversee the trust.
Irrevocable Living Trusts
In most cases, once agreements for irrevocable living trusts are completed, they cannot be changed. The only time the terms of an irrevocable living trust can be modified is with the beneficiaries’ approval. These trusts will take effect when a person is still living and cannot be terminated.
Your specific needs will help to determine which type of living trust should be developed. We know that this may be a complicated process, so contacting our Memphis, TN trust attorney will be an appropriate next step for making decisions specific to your needs.
The Advantages and Disadvantages of a Living Trust
When estate planning, your attorney may advise you to consider developing a living trust. Trusts can help meet many needs for families and provide benefits to those who consider establishing one:
While a trust certainly can offer many advantages, it will be vital that you speak with an experienced attorney who can educate you on all aspects of a trust, including some disadvantages:
There is a vast array of available trusts, each with the ability to meet your specific situation. Engaging with Wiseman Bray PLLC during the estate process is essential. We may recommend that you develop a trust as a way of safeguarding assets, minimizing the tax implications, and retaining as much of your wealth as possible so that it can be passed on to beneficiaries. Get started today with our Memphis, Tennessee trust attorney.