Montgomery County Trusts Lawyer
More and more people are deciding to use trusts as the way to manage and distribute their assets. A trust is a versatile estate planning document that can be customized to meet your needs.
A Montgomery County trusts lawyer regularly prepares and administers trusts for the benefit of individuals and families. Trusts are an extremely useful planning tool that can be integrated as part of any estate plan. There are many different types of trusts and the most commonly used one is a revocable living trust. Call a seasoned attorney today to get started on planning your future.
Understanding the Elements of a Trust
On a basic level, a trust is a legal document that is established to hold title to property that is transferred to the trust. The language as drafted in the trust directs how assets are to be held and distributed. The trust assets are managed by the appointed trustees for the benefit of the designated beneficiaries.
Typically, the person who establishes the trust, often called the settlor or grantor, is both the initial trustee and beneficiary of the trust during their lifetime.
A trust can direct trustees to distribute assets to the beneficiaries outright or retain those assets in the trust for the beneficiaries. Directing assets to be held in trust until a beneficiary reaches a certain age, or for their entire lifetime, provides added control over how the money is spent compared to an outright distribution. For example, a trust may provide that the trust assets may only to be used for the beneficiary’s education or medical expenses.
Retaining money in a trust may also provide additional protection from the beneficiary’s creditors or from their spouse in the event of divorce.
Reasons to Take Advantage of Trust Planning in MoCo
Although there are other documents such as a will that can effectively dispose of an estate, a trust provides unique benefits that other documents do not. Using a trust not only can effectively divide and distribute assets upon death, but trusts can also:
- Avoid the court-supervised probate process
- Manage assets for persons with disabilities
- Provide privacy of your wishes and assets
Whether an individual’s goal is simply to leave assets to loved ones or take advantage of more advanced tax planning, a trust can help accomplish these goals.
In addition to after death planning, trusts also provide a planning opportunity for asset management in the event of incapacity during life. Without a document like a trust in place, a guardianship or conservatorship proceeding may be necessary in the event a person becomes unable to manage their own affairs.
Modifying a Trust
Changes in the family or financial circumstances may prompt the need to update an estate plan. Luckily, most trusts are revocable and therefore can be easily revoked or amended. Some trusts, however, are irrevocable and generally cannot be changed after they are established. Irrevocable trusts, in particular, should be carefully drafted with the help of a knowledgeable MoCO trusts lawyer.
How a Montgomery County Trusts Attorney Could Help
Whatever your estate planning goals are, an accomplished Montgomery County trusts lawyer is confident that they could prepare a trust that meets your expectations. Protecting the assets you have worked hard all your life to acquire is important. An attorney wants you to know all your options before making any decisions about whether or not a trust is right for you.
If you would like to discuss Montgomery trusts in greater detail, call today.