Fairfax Trusts Lawyer
There are many different types of estate-planning tools available to individuals, and trusts are known to be some of the most effective. A trust distributes the property or funds of a person to a beneficiary, but another party, known as the trustee, will be responsible for distributing these funds and using them in a manner that benefits the beneficiary.
Creating a trust can be difficult, especially if you do not know where to start, but by hiring a Fairfax trusts lawyer, you can ensure your trust carries out your wishes and provides for your loved ones. Learn more about trusts by speaking with a reliable trusts and estates attorney right away.
Reasons to Create a Trust
Creating a trust is a complex process, and to do so, a property owner or settlor transfers ownership of a property to another person or institution or the tru stee. As a Fairfax trusts lawyer knows, the person or institution will be tasked with managing the property for another person (the beneficiary), and in some cases, the trustee will receive some form of compensation for their effort.
The trustee is expected to act in the best interest of the beneficiary, but if they fail to do this, they can be held legally and financially accountable by the beneficiary. In some cases, settlors may choose to themselves trustees, but if they do this, they must still act in the best interest of the designated beneficiary. Settlors may also choose to name themselves as beneficiaries, but they will still need to transfer the property to a trustee for safekeeping.
Testamentary vs. Living Trusts
Legally, there are two broad categories of trusts – testamentary and living. Testamentary trusts transfer property into a trust after the death of the settlor and are incorporated in a testator’s Last Will and Testament. These trusts are created while the testator is alive, but not funded until after death.
On the other hand, a living trust goes into effect during the life of the settlor. A living trust can be either revocable or irrevocable, and it is possible to create a living trust that continues after the death of the settlor. A revocable trust allows the settlor to alter the terms of the trust at any time. An irrevocable trust prohibits settlors from making any changes after its creation. Revocable trusts become irrevocable upon the death or incapacity of the settlor.
Benefits of Hiring a Trust Lawyer
If a person wants to avoid probate when creating a trust, they may need to hire a Fairfax trusts lawyer to assist them. It is important to note that if a person creates a revocable trust and transfers all their property to a trustee prior to their death, any property in the trust will avoid probate upon their death.
Creating a trust is a great way to ensure your loved ones are provided for and their inheritance is put to good use. By working closely with an attorney, an individual can ensure that they understand the complex concepts involved in creating and properly funding a trust. Get started by contacting a Fairfax trusts attorney.