Understanding whether you need to include a trust in your estate planning strategy can be difficult if you haven’t started planning for how your assets will be handled once you’ve passed away. Planning is an essential first step that can help you and your family put the right legal tools in place to meet your future goals. Whether you are at the initial planning phase or you’re ready to establish a trust, the Michigan trust attorneys at Michigan Law Center can help. Do you need a trust designed to meet complex financial goals, call us today at (855) 740-0606 to schedule a consultation. Our Michigan trust attorney can assess your situation and help you get started. We have many years of experience helping families throughout the state make smart, measured choices to protect their assets for the next generation.
What Is a Trust?
When establishing a trust, an individual or entity creates a fiduciary arrangement that allows another named party to take control of assets on behalf of the owner of those assets. Trusts are powerful legal tools that can protect you and your family’s assets. Once established, a trust gives a trustee control over enumerated holdings on behalf of a named beneficiary.
- Revocable Living Trusts
- Irrevocable Trusts
- Special Needs Trusts
- Irrevocable Life Insurance Trusts
- Charitable Trusts
A trust can be arranged in many ways, so establishing a trust that meets your goals can require careful planning. It’s important to begin by choosing the legal tool suits your needs.
She was also very patient and answered all of my questions.Lisa O.
Establishing the correct type of trust for your situation requires thorough planning. Depending on your purpose for creating a trust, you will need to choose from two distinct types: revocable or irrevocable. There are fundamental differences, which are outlined below:
- Revocable Trusts: If you need the authority to end or change the structure or assets included in your trust, you will need to establish a revocable trust. The person controlling a revocable trust can alter the terms and make additions to the trust at any time. Whether you need to make large or small changes, a revocable trust is the best fit in these situations.
- Irrevocable Trusts: Unlike a revocable trust, once established, an irrevocable trust cannot be amended once created. Once assets are placed in a trust of this type, they belong to the trust. Because these types of trusts are legally final, they offer unmatched asset protection.
Including a trust in your estate plan can help shield your assets from probate, provide advanced tax preparation, and long-term care solutions for disabled loved ones.
Do you Need to Establish a Trust?
Most estate plans benefit from the addition of the right type of trust, but there are certain situations where adding a trust is a vitally important legal solution. If you have a complicated business arrangement or children from a previous marriage, establishing a trust can best serve the interest of all parties.
Establishing a trust is recommended for:
- Large blended families: Spouses with children from a previous relationship can use a trust to ensure they have made financial choices to protect the interests of their children. If you were to pass away without an established estate plan, all of your assets could be left to a new spouse, with little being done to ensure your children's inheritance.
- Business owners: If you own a business, establishing a trust will protect the interests of your business, allowing it to grow and change even if you become incapacitated. You can name a new operator for your enterprise and ensure your company's affairs will be executed according to your preset goals.
- Special needs families: Parents of children with special needs need to have a plan to care for the long-term physical, mental, or developmental challenges their loved ones will face once they’re gone. Establishing a trust will ensure your family member’s interests are secure.
Drafting Your Trust in Macomb, Wayne and Oakland Counties
Our trust attorneys at the Michigan Law Center can help you meet your future planning goals. It can be challenging to know what to do to protect your assets once you’re gone, which is why our attorneys are available right now to set up a consultation to review your goals and present needs. We can help you execute your legal plans and prepare for your future.
Macomb Twp., MI 48044