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While it can be uncomfortable to talk about what your family and friends should do with your estate after you’ve passed away, it’s necessary to care for everything you own. Whether it’s your accumulated wealth, your real estate property, belongings, or any other kind of property, you should account for it. While a will dictates how everything will pass, it will go into probate, a process where a significant portion of your estate’s value and wealth will be lost to taxes. For this reason, the estate planning lawyers suggest that you make a revocable or irrevocable trust. Revocable and irrevocable trusts are two overarching types of trusts that other subsects fall under.
A trust itself is a legal and financial arrangement that transitions the ownership of the property that makes up your estate to the trust’s recipient. If you’re making a trust, you are the grantor or trustor, and you must select a grantee or trustee to receive its contents. You can make a trust that is only available to people under certain conditions, or an organization.
You have to be careful and thorough when making a trust. There are things you can’t put into a trust, and if certain pieces of property aren’t distinguished properly, they may not go where you want them to. Contact the estate planning attorneys at Tressler & Associates for help creating a trust.
A trust is either a revocable trust or an irrevocable trust, it cannot be both. A revocable trust is a trust that you create during your lifetime and when you are conscious. This means that as long as you can make decisions for yourself, you can change or terminate the trust at any time. This does mean that if you become mentally incapacitated, there is no way to make changes to your revocable trust.
An irrevocable trust is the opposite of a revocable trust in most ways. It’s what a revocable trust becomes when you become mentally incapacitated or you die. From here on, it follows the rules you set forth, and can only be amended by a court in certain circumstances. This means if you meant to leave this trust to someone specific after you pass, they will receive it after you die or after a specific circumstance that you stated in your instructions. In cases where you are mentally incapacitated, a trust will become irrevocable, but it may not give your intended trustee its contents until after you die.
The difference between revocable and irrevocable trusts is your physical and mental state, but not what they can hold. This means that the same pieces of property can be held by your trust. Whether it is revocable or irrevocable doesn’t matter. They can both hold:
There is a lot that can go into a trust, but there is also a lot that cannot go into a trust, some of which are similar to things you can. This includes:
Making a trust without an estate planning attorney can cause problems for your estate and loved ones later. Work with an experienced estate planning attorney, such as those at Tressler & Associates, so we can make sure everything is correct. You don’t want anything going to the wrong person or even the state government rather than your loved ones. Contact Tressler & Associates for help creating a trust.
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