A trust is an estate planning tool with a quite different purpose than a will. It contains instructions for the distribution of the trust’s assets upon the grantor’s (the person who created the trust) death. The assets in the trust—or the assets that flow into the trust at the time of the individual’s death—will be passed on to the trust’s beneficiaries.
Because each individual’s needs and goals for their estate plan vary, working with an experienced estate planning lawyer can allow you to establish the trust you need to pass along your hard-earned wealth. Call LaFountain & Wollman, P.C. to speak to an attorney about all your estate planning needs and how a trust could benefit your estate and your heirs.
What Type of Trust Should I Create?
A trust can be revocable or irrevocable. This distinction is important because it determines what action you can take concerning the trust assets.
In a revocable trust, you can change the terms at any time. However, if you establish an irrevocable trust, the terms can only be modified if all of the trust beneficiaries consent to the modification. Your estate planning lawyer will help you determine what type of trust best suits your needs and goals.
How Do I Modify My Trust?
The type of trust dictates to what extent you can modify your assets in the trust. In addition, revocable trusts and irrevocable trusts have specific advantages and disadvantages:
- Revocable Trusts – The grantor of the trust can change the terms of a revocable trust at any time. For example, they may change requirements concerning the trust assets or the beneficiaries. Assets in a revocable trust are still in the grantor’s estate, and so they are subject to federal and state estate taxes. Further, creditors can access the trust if they have a judgment against the grantor. Despite certain disadvantages, establishing a revocable trust means you can avoid probate of the property upon your death.
- Irrevocable Trusts – An irrevocable trust can only be altered when all the beneficiaries consent to the modifications, or the court orders changes. As such, it may be prudent to limit the number of beneficiaries. Unlike revocable trusts, irrevocable trusts are not subject to estate taxes, and the trust assets are protected from creditors because the grantor no longer owns them; the assets are the property of the trust.
How Do I Select a Trustee?
The trustee plays an important role in your estate plan because they will manage the trust assets and ensure your instructions are carried out upon your death. They will also be responsible for paying any required taxes and distributing funds to beneficiaries. For these reasons, consider these factors when picking your trustee:
- Availability – Choosing someone with the time and availability to manage the trust will give you peace of mind, knowing that your trustee will give the care and attention required to administer your trust properly.
- Priority – Consider a trustee with the appropriate temperament and ability to manage your estate. Instead of selecting the oldest child or making a decision based on gender alone, choose the person best suited for this role based on their work experience or personality.
- Number – Your attorney may suggest selecting a sole trustee or co-trustees depending on the family dynamics and your unique circumstances.
- Timing – Consider the best person for the job right now based on their age and ability to manage the trust in the future.
- Cost – Although many people quickly dismiss the idea of appointing a professional trustee given the cost, an objective third party with a business and financial background may be a better fit to manage your estate than a family member. However, should the person or entity you select no longer be available to manage the trust when the grantor passes, the trust document should contain a provision for the appointment of an alternate trustee.
What If There Is A Dispute Concerning the Trust?
At LaFountain & Wollman, our lawyers have experience in all aspects of trust litigation. If issues arise concerning appointing a trustee, which could occur if one was not named and the trust does not contain a provision for appointment or the named trustee was unable to serve, we can assist. Or, if you are a beneficiary of a trust and believe the trustee has breached their fiduciary duties in administering the trust, we can assess the circumstances and advise you of your legal options.
Whether you need legal assistance to establish a trust or or help with clarifying the terms of a trust, our attorneys are well-equipped to guide you through any matter that may arise, even if litigation is required to resolve the dispute.
Why Do I Need A Lawyer From LaFountain & Wollman, P.C.?
When you hire an attorney from LaFountain & Wollman, you can expect a personalized approach to developing your estate plan. No two estates are the same, and we strive to craft each of our client’s estate plans to their unique needs and circumstances. You can trust that we have your best interests in mind as we help plan for your family’s future financial security. We will answer all of your questions and provide the guidance you need each step of the way. Our attorneys are committed to providing you with the compassionate and professional service our clients have come to expect.
Contact a Watertown, MA, Estate Planning Attorney Today
A trust can be an important part of your estate plan. From determining the type of trust that best fits your needs to selecting the right trustee, creating your estate plan with the help of an experienced estate planning attorney is essential. Call LaFountain & Wollman to discuss your family dynamics, the type of assets you want to put in the trust, and the trustee’s responsibilities with one of our Middlesex County estate planning attorneys.