A trust is used to funnel some kind of assets to a beneficiary, and the trust sets up the stipulations and information about how these assets are to be transferred.
There are a number of different kinds of trusts. A skilled advice from Meek Law Firm you will be able to understand the best option for your needs. The increasing variety of different kinds of trusts means that regardless of the unique family situation or the desires of the trust creator, there is likely an arrangement that will be suitable.
And while there are many types of trusts with different provisions, there are several basic requirements of a trust. For example, every trust has to be created by a grantor. This is the person who wants to create the transfer of the assets.
A trustee will need to be appointed in order to manage the assets and stipulations of the trust. The principal within the trust is managed by the trustee, who assumes fiduciary responsibility on behalf of the trustee. READ MORE
A beneficiary or beneficiaries will need to be put into place to receive some or all of the trust assets. The trustee is responsible for keeping contact with these beneficiaries.
Trusts can further be broken down into a few different categories: living versus testamentary trusts, trusts differentiated by their overall purpose, or a revocable versus an irrevocable trust. A living trust is one that goes into effect while the grantor is still living. A testamentary trust goes into effect after the grantor has passed away. Trusts differentiated by purpose simply refer to the goal of the grantor when placing the trust into effect. (Some examples include spendthrift trust, children’s trust and an insurance trust, which may have different overall goals and therefore different structures.) Finally, a revocable trust can be altered whereas an irrevocable trust cannot be changed.
Meek Law Firm can help you establish any of these trust options. Contact us today to get started.
A living revocable trust is part of the estate planning process that’s a way to avoid probate. The living revocable trust also provides long-term management of property. As the name implies, the trust can be revoked or completely terminated at any time. Since it’s also known as a “living” trust, it can be added to and updated as needed. The trust is designed to pass assets on to beneficiaries and can be funded as little or as much as you desire. Any assets that are not put into the trust will be subject to probate. more about Revocable Trust…
An irrevocable life insurance trust (ILIT) is a simple way to protect life insurance proceeds from large estate taxes. Benefits can be significantly reduced if they are put through estate taxes. An ILIT pulls the life insurance proceeds out of the estate and instead places them in a trust. In order for this to be effective, the trust must take ownership of the life insurance policy away from the estate. It’s a relatively easy process that can be completed quickly by an attorney. more about Insurance Trust…
Spend Thrift / Special Needs
A spendthrift trust is an ideal option for the parent who wants to leave assets to their children but fears that financial irresponsibility will take hold and significantly reduce or eliminate the value of the assets. A spendthrift trust ensures that assets are transferred to the beneficiary in a way that is structured by the creator of the trust. The goal is to protect assets and have them managed in a responsible way. The wording is critical in a spendthrift trust, so work with an experienced attorney. more about Spend Thrift / Special Needs…
If you want to create a trust to transfer assets to a charity, you have two options in North Carolina. A charitable remainder trust has both income tax and estate tax deductions, which appeals to many interested in donating to charity. This option allows the donor to leave some of their estate to a charity while gaining a benefit for themselves in the short term. A charitable lead trust pays income to the charity for the lifetime of individuals or a set number of years. When the trust expires, any assets left are given to the donor, spouse or children. more about Charitable Trust…
A children’s trust is put into place to provide for the future of one’s offspring while enacting provisions that limit the options they have for the money. This reduces the chance of an unwanted outcome that the gift of a lump sum of money can trigger, such as the children spending all of the money quickly. If the trust is irrevocable, the grantor cannot alter the terms of the trust or take beneficiary names off of the trust documents. A revocable trust, however, can be amended as long as the grantor is still alive. more about Children’s Trust…
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