Trust Administration and Settlement

Irrevocable trusts can provide a level of asset protection by removing assets from the grantor’s estate. Once placed in an irrevocable trust, those assets generally cannot be reached by creditors or legal judgments against the grantor.

Probate Avoidance

Assets held in a living trust can bypass the probate process, which is the legal process of validating a will. This can lead to faster distribution of assets to beneficiaries, lower costs, and increased privacy, as probate proceedings are public record.

Control Over Distribution

Trusts allow the grantor to specify how and when assets should be distributed to beneficiaries. This is particularly useful when dealing with minor children, individuals with special needs, or when the grantor wants to control the timing of distributions.

Minimizing Estate Taxes

Certain types of trusts, such as irrevocable life insurance trusts (ILITs) or qualified personal residence trusts (QPRTs), can be used to minimize estate taxes. These trusts remove the value of specific assets from the grantor’s taxable estate.

Caring for Minor Children

A testamentary trust or a living trust can be established to manage and protect assets for the benefit of minor children. The trust can specify when and how the assets are to be distributed for the child’s benefit.

Special Needs Planning

Special needs trusts (SNTs) are designed to provide for individuals with disabilities without jeopardizing their eligibility for government benefits. These trusts can supplement the individual’s needs while maintaining eligibility for programs like Medicaid or Supplemental Security Income (SSI).

Charitable Giving

Charitable remainder trusts (CRTs) and charitable lead trusts (CLTs) are trusts designed for charitable giving. A CRT provides income to the donor or beneficiaries for a specified period, with the remainder going to a charitable organization. A CLT, on the other hand, provides income to a charity for a specified period, after which the remaining assets go to non-charitable beneficiaries.

Managing Incapacity

A revocable living trust allows for the seamless management of assets in the event of the grantor’s incapacity. The successor trustee named in the trust document can step in and manage the trust assets without the need for court intervention.
Business Succession Planning:

Family limited partnerships (FLPs) and family limited liability companies (LLCs) can be used within an estate plan to facilitate the transfer of family businesses to the next generation while maintaining control and providing for an orderly transition.

Privacy

Trusts can provide a level of privacy not available with a will. Since trusts generally avoid probate, the details of the estate plan remain private, while the probate process is a matter of public record.

It’s important to note that the specific type of trust and its provisions will depend on the individual’s goals, family dynamics, and financial situation. Contact Collinson Law today and let us help you determine what type of trust best meets your individual needs.