Wills and Trusts
WILL. A will allows you to appoint an executor, direct where your stuff will go and help reduce the cost of probate for your friends and family. Families with minor children can also appoint guardians who can care for children should both parents be deceased. This type of will works well for those without estate tax concerns and want to make simple gifts to their beneficiaries.
TRUST. There are many different types of trusts. A trust is an agreement between the settlor (the person(s) creating the trust) and the trustee (the person(s) that will be managing the trust) where the trustee agrees to hold property for the benefit of a beneficiary or beneficiaries.
The trustee is given title to the property in the trust and is obligated to manage the property in a way that is in the best interest of the beneficiaries. Trustees are fiduciaries, which means that they have duties that are owed to the beneficiaries, including the duty not to self-deal and the duty not to co-mingle trust assets with the trustee’s own assets.
You do not need to be wealthy to receive the benefits of a trust. Each type of trust has its own benefits and requirements. When you are considering a trust for your estate plan, it would be wise to contact the Law Office of Maria Pavone Macek. It is essential to work with an attorney who has experience with trusts and can guide you through the process to make sure it is set up properly and your goals will be met.
Revocable Trust. With this type of trust the trust maker retains the right to amend the terms of the trust and terminate the trust. This is one of the most common types of trusts. Revocable living trusts can provide probate avoidance and can be important if you have real estate in multiple states to help your family avoid having to go through probate in each state the property is located. Other benefits might include privacy protection and disability protection among other things.
Irrevocable Trust. The person who creates the irrevocable trust cannot undo the trust or amend any of the terms within it. With this type of trust the beneficiaries have more rights. The most common use reason to have an irrevocable trust is to move assets out of the trust maker’s name and control for asset protection and transfer to the assets to the next generation