When it comes to estate planning, trusts can be a powerful tool to protect your assets and ensure they are distributed according to your wishes. However, many people find the concept of trusts confusing due to the many different types available. In this post, we will break down the basics of trusts to help you understand how they work and which one might be right for you. If you have any questions, we encourage you to contact White & Jocham for expert legal guidance.
What is a Trust?
A trust is a legal arrangement where an individual (the grantor) transfers fiduciary control of their assets to a trustee, who manages them for the benefit of designated beneficiaries. Trusts provide a structured way to manage and distribute assets while potentially offering tax advantages and probate avoidance.
If you’re unsure how a trust could benefit you, reach out to White & Jocham for a consultation.
Types of Trusts
The term “trust” is broad and can refer to many different types, each serving unique purposes. Some common types of trusts include:
- Revocable Living Trusts – Allow the grantor to retain control and make changes during their lifetime.
- Irrevocable Trusts – Once established, these trusts cannot be altered and may offer tax or asset protection benefits.
- Special Needs Trusts – Protect assets for a disabled beneficiary without jeopardizing government benefits.
- Charitable Trusts – Allow individuals to leave assets to a charitable cause while receiving tax benefits.
- Testamentary Trusts – Created through a will and only take effect after the grantor’s death.
Each type of trust serves a different function, much like different types of vehicles serve different purposes. Choosing the right trust depends on your financial and estate planning goals.
Our attorneys at White & Jocham can help you determine the best type of trust for your situation. Schedule a consultation today.
Are Trusts a New Concept?
No. Trusts date back to Old England, originally used by wealthy individuals to manage their estates. Today, estate planners recognize that individuals with even modest estates can benefit from the structure and protection a trust provides.
Want to explore how a trust can safeguard your legacy? Contact us for personalized estate planning advice.
Revocable vs. Irrevocable Trusts
A revocable trust allows the grantor to retain control over their assets and modify or dissolve the trust at any time. A revocable living trust is a popular option for those looking to avoid probate while maintaining flexibility.
An irrevocable trust, on the other hand, cannot be changed or revoked once created. While this may seem restrictive, irrevocable trusts can offer tax benefits and asset protection advantages that revocable trusts do not.
Determining whether a revocable or irrevocable trust is right for you requires careful planning. Let White & Jocham guide you through the decision-making process.
What is a Living Trust?
A living trust, also known as an intervivos trust, is created during the grantor’s lifetime. It allows for seamless asset management and distribution upon death while avoiding probate. Living trusts can be revocable or irrevocable, and they offer privacy, unlike a will, which becomes a public record.
Protect your assets and ensure a smooth transfer to your heirs. Contact White & Jocham to discuss whether a living trust is right for you.
Are All Living Trusts the Same?
No. Just as all cars are not the same, living trusts vary based on an individual’s financial, tax, and family needs. A well-drafted trust is tailored to meet your specific objectives.
Don’t settle for a one-size-fits-all solution. Our experienced attorneys can craft a customized trust that meets your unique needs.
Are Living Trusts Recognized in All States?
Yes. Living trusts are valid in all 50 states and even in many foreign countries. If you move to another state, your trust will still be recognized, though a legal review is recommended to ensure it aligns with local laws.
If you have a trust or are considering one, White & Jocham can review and update it to comply with state laws.
Do Trusts Make Sense for Single Individuals?
Absolutely. Many assume trusts are only for married couples, but single individuals can benefit greatly from a trust. A living trust can help a single person avoid probate, plan for incapacity, and ensure assets are distributed efficiently to multiple beneficiaries.
If you’re single and want to secure your estate, let us help you create a plan that works for you.
Take the Next Step in Estate Planning
Trusts are a valuable estate planning tool, but the best way to determine which trust is right for you is to work with an experienced attorney. At White & Jocham, we take the time to understand your goals and create a personalized estate plan that protects your assets and loved ones.
Don’t wait to plan for the future. Contact White & Jocham today to schedule your estate planning consultation