Trusts are a valuable tool used to help you reach your financial goals and distribute your assets to the beneficiaries of your choice. Regardless of the value of your estate or assets, you can use a trust to ensure your wishes will be met and to relieve your loved ones of legal burdens related to probate. However, it is not always easy to know which types of trusts in Atlanta are relevant to your needs.
If you are interested in creating a trust to protect your wealth and ensure your wishes are honored, an experienced trusts attorney can help. Schedule a virtual strategy session with Siedentopf Law to discuss your unique estate planning needs and the types of trusts that will be beneficial in your situation.
Revocable and Irrevocable Trusts
The two main types of trusts are revocable and irrevocable trusts. All sub-types of trusts will fall into one of the two categories. A revocable trust is one that can be changed or voided within the grantor’s lifetime. An irrevocable trust cannot be modified once it is created.
If you create a revocable trust, you can name yourself as the primary trustee and remain in control of it until your passing. An irrevocable trust requires you to name someone else as the trustee, and the terms of the trust will never change. Irrevocable trusts are used less frequently in estate planning than revocable trusts, and often used to shelter assets from creditor claims or tax liabilities.
Common Types of Trusts You Can Choose
Atlanta residents who are planning for the future should understand what each type of trust offers. Each one is used to protect or distribute assets in specific ways.
Living Trust
A living trust is one created by the grantor during their lifetime. Most types of trusts are living trusts that allow the grantor to maintain control over their assets while they are alive and use them as they wish. Living trusts enable the automatic transfer of assets and allow beneficiaries to avoid probate court.
Testamentary Trust
A testamentary trust is one that is created by the grantor’s will. Some people choose to set up a testamentary trust to leave assets to someone who will not be able to manage them, or for a trust that requires less maintenance during their lifetime. A testamentary trust is only established after the individual who created the will has died.
Special Needs Trust
A special needs trust is designed to provide assets for individuals with disabilities without jeopardizing their eligibility for government benefits. The assets are controlled by a trustee instead of the beneficiary. Because the beneficiary has no control, the funds are not considered for government program eligibility.
Spendthrift Trust
A spendthrift trust gives the beneficiary restricted access to funds. It is often used when grantors are concerned about the beneficiary’s ability to manage the money. Spendthrift trusts are usually set up to provide regular payments to beneficiaries or to require the beneficiary to ask the trustee for funds.
Charitable Trust
A charitable trust is an irrevocable trust that allows you to pass assets along to a charitable organization. You can choose to set aside certain assets for a specific charity or to receive income from your assets until your passing, at which time the remaining assets would be passed to the charity.
Other common types of trusts include marital, minor, credit shelter, insurance, and property trusts. With all these options, it is important to talk with an estate planning lawyer who can analyze your situation and advise on which type of trust will help you.
Contact a Skilled Atlanta Attorney to Explain the Types of Trusts available
Various types of trusts in Atlanta are used in estate planning to safeguard assets and meet the needs of beneficiaries. However, trusts can be difficult to understand, leaving you uncertain about your options. Sarah Siedentopf helps people all across Georgia and believes in the future-proofing power of legal trusts. Her individualized approach provides you with a tailored solution that will preserve what truly matters for future generations. Schedule a strategy session today and learn more about trusts.
N/a
