When the general public hears the word “trust” most people instantly think of families that are extremely wealthy and have a great amount of property and other assets. However, this is actually a popular misconception. A trust can be an excellent estate planning tool that can be used to provide for your loved ones after you have passed away.
There are a variety of options when it comes to establishing a trust and our highly informed attorneys can answer any questions that you may have and help you determine what would be in both your and your family’s best interest going forward. An Elizabeth City trusts lawyer can help you protect your assets.
What is the Most Common Type of Trust?
In order to answer what is the most common type of trust, it is necessary to understand what a trust is. A trust is a legal entity set up by a Trustmaker, also known as a grantor. In the trust document, the Trustmaker appoints a Trustee to manage the assets contained within the trust on behalf of the beneficiaries who have been named in the trust.
The most common type of trust used is known as a revocable trust, also known as a living trust. In this type of trust, the creator of the trust has the legal ability to change, modify, or dissolve the trust at any time per their discretion. Over time you can place or remove items from the trust. For example, if your home is listed in the trust you have the ability to remove it, sell it, and then put your new home in the trust if you so desire.
It is important to understand that once items are placed in a trust, they actually belong to the trust, and are no longer titled under your name, but under the trust instead.
One major advantage that a trust has over a will is that where a will is subject to the process of probate, a trust is not. After a will has gone through the process of probate then the terms and contents are available to the public, whereas this is not the case in a revocable trust. Therefore, your heirs and beneficiaries retain a certain level of privacy. An attorney in Elizabeth City can determine the best trust for your needs.
Benefits of Having Assets in a Trust
The various benefits to placing assets in a trust are numerous and can provide you with a high level of assurance that your heirs will receive those assets that you intend for them to have after you pass away. Some of those benefits include the following:
- Provide instructions as to how your assets should be managed, should you become incapacitated. This also allows the Trustee the legal ability to make decisions as to how your assets can be used to provide for your family.
- Indicate instructions as to how heirlooms and sentimental items should be distributed.
- Include funds intended for educational expenses for your children or grandchildren.
- Appoint a trustee to manage financial affairs on behalf of underage beneficiaries or those who may have substance abuse problems.
- Provide assets to a surviving spouse, which will be protected against them being sued and the assets being seized.
A lawyer in Elizabeth City can help you achieve these benefits with a trust.
Call an Elizabeth City Trusts Lawyer for Help
An experienced Elizabeth City trusts lawyer can create a trust that meets all of the essential legal requirements. With the assistance of one of our trust attorneys, you can set up the trust to ensure that the assets contained within it are passed on to the beneficiaries without any legal issues. Our attorneys are well-versed in trust law and can advise you as to your legal options. If you are ready to set up a trust, or just need more information in order to make an informed decision, call Parks Zeigler, PLLC.
