Trusts
Trusts
In addition to a will, trusts can be an important part of your overall estate planning. A trust is a legal document that is created to manage your assets during your lifetime and distribute your remaining assets after your death. The “grantor” is the person who creates the trust (you) and the “trustee” is the person responsible for managing the assets of the trust. By law, you can serve as your own trustee or you can appoint another person, trust company or bank to serve as your trustee.
Throughout your lifetime, the trustee manages your property making investments and managing your assets. In the event you should become incapacitated, the trustee will continue to manage your estate, pay your bills and make investment decisions in your best interest.
The overall duties of a trustee include:
- Invest trust assets
- Distribute trust income
- Keep records of all trust transactions
- Make tax decisions regarding the trust
- Provide account statements and tax reports to the beneficiaries
Upon your death, the trustee will pay all claims and taxes and distribute the remaining assets to the beneficiaries you designated in your trust agreement.
There can be many benefits to establishing a trust, including the ability for your beneficiaries to avoid the probate process upon your death. This can result in a considerable savings in time and administrative costs. However, It is important that your assets are properly transferred to your trust. Assets that are not properly transferred may be subject to probate. Consult with an attorney who specializes in trusts and estate planning to help you determine the best way for you to manage your assets.
Our attorneys have many years of experience in wills and estate planning and can help you navigate through this complicated process. Contact us today to schedule a free consultation to begin your estate planning.
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