What are Trusts?
Probate Attorney in Canton, Ohio
Trusts hold property or assets for the person who created it, who is known as a grantor. The grantor then appoints a person to manage the trust for them, such as a bank, who is known as a trustee. The person the grantor chooses to benefit from the trust is known as the beneficiary. They are becoming more and more popular due to their ability to reduce estate tax liability, protect assets and property in an estate, and avoid the probate process. There are many different types of trusts, and they all have their own regulations. I, Elizabeth A. Burick, can help you set up a trust that fits your individual estate plan. Please contact my office if you wish to work with me, a Canton, Ohio probate lawyer, in order to create a trust that fits your needs.
Trusts can be set up in order to avoid a person’s estate going through probate, and transfer property instantaneously to beneficiaries upon the grantor’s death. They may also be created in order to provide for minor children or family members who cannot properly handle finances. Trusts can also ensure that a person’s assets and property are managed if they should become incapacitated or severely ill. Reducing estate taxes is another positive aspect of trusts, and, if necessary, a trust may also provide liquid assets in order for one to pay for estate taxes. Unlike a will, the terms of a trust are private, and can only be known by heirs and beneficiaries. Wills are public knowledge, and anyone can view the wishes of the deceased.
Types of Trusts
There is a plethora of trust types, and each has specific requirements. The two basic forms of trusts are living trusts and testamentary trusts. A testamentary trust is set up in a will, and goes into effect after a person dies. A living trust is established during a person’s lifetime, and consists of two forms. The first form is a revocable living trust. This type of living trust allows one to control their assets in the trust, and can change the terms or revoke the trust entirely at any point. If the grantor becomes incapacitated, the trustee will manage the trust according to the terms in which it created. When the grantor dies, the trustee is responsible for distributing the trust’s assets.
An irrevocable trust means that the assets one placed in the trust are no longer theirs, and they have no control over what happens to the assets unless they have the beneficiary’s permission. A credit shelter, also known as a family trust, is when a certain amount of money is said to be put into a trust in a will, but the amount cannot exceed the estate-tax exemption. Generation-skipping trusts (also known as a dynasty trust), qualified personal residence trusts, irrevocable life insurance trusts, charitable trusts, and qualified terminable interest property trusts are also types of trusts that people may create in order to divide and protect assets according to their individual requests.
Elizabeth A. Burick Co. L.P.A.
The Canton, Ohio probate lawyer at my firm is familiar with every type of trust a person may wish to create. With over 29 years of experience, my team and I are able to help you construct a trust according to your individual needs. If you are interested in how my firm can work with you, please call the office.