A trust can be used to manage your assets while you are still alive and can become very important if you lose your capacity to manage your own affairs. A trust can also be used to be sure that your assets are distributed at the right time instead of relatively soon after your death. A trust is a useful tool in an estate plan that goes beyond just a basic plan.
A trust is a form of property ownership whereby an individual called the Trustor (also known as Settlor) transfers ownership of property to a trustee who manages and invests the trust assets and makes disbursements to beneficiaries according to the terms of the trust instrument. Duties of the trustee include collecting assets, paying taxes and debts of the trust and making distribution to the beneficiaries. Trusts are identified according to the time of their formation. Trusts formed during lifetime are known as living or inter-vivos trusts. Trusts formed at death are generally known as testamentary trusts. Living trusts are usually revocable and amendable during lifetime but become irrevocable and non voluntarily changeable at death. Living trusts may be modified or amended after death but only with considerable expense and legal proceedings.
A living trust allows for the management of your assets during your life, and provides that the trust assets will be distributed directly to your chosen beneficiaries at your death, avoiding the time, expense and publicity of probate. In addition to simple and complex wills, the attorneys at Tuesley Hall Konopa, LLP are experienced in preparing the following types of trusts:
- Dynasty/generation-skipping (GST) trust
- Charitable or charitable remainder trust (CRTs
- Special needs trust
- Credit shelter trust
- Qualified personal residence trust (QPRTs)
- Irrevocable life insurance trust (ILITs)
- Qualified terminable interest property trust (QTIPs)
- Grantor-retained annuity trust (GRATs) or GRUT or GRIT
- Supplemental needs trust
- Intentionally defective grantor trust
There are many misconceptions regarding the uses and purposes of trusts. Call (574) 232-3538 to make an appointment and get the answers you need to make informed decisions regarding your future and that of your loved ones.