Kennewick Trusts Lawyers
Trusts make up an important part of many estate plans. They have many benefits including protecting your assets while you are still alive, and holding certain property for loved ones in the event that you pass away. There are many different types of trusts, though, and the one you need will depend on the specific facts of your situation. Below, our Kennewick trusts lawyer explains more.
Revocable Living Trusts
Revocable living trusts are created so loved ones can avoid the probate process after a person’s death. While living trusts can work in conjunction with a will, they are separate legal documents. A living trust will come into effect as soon as it is signed. To effectively work, the person who creates the trust must fund it by transferring bank accounts, real estate, or other property into it. The provisions within the trust will govern how it is managed and how the assets contained within it are distributed to beneficiaries.
A person can create a revocable living trust during their lifetime and they will control the assets within it until they pass away. As the name suggests, revocable living trusts can be changed at any time during the trustee’s life and the terms cannot be changed once they pass on.
Testamentary Trusts for Tax Reasons
There are many different types of trusts that can be used to avoid or minimize state and federal estate tax liability. Two of the most common are credit shelter trusts and disclaimer trusts. Unlike many other types of trusts, a testamentary trust is included as part of the will and they become effective as part of the estate administration process after a person passes away. These trusts are intended to make sure the needs of a surviving spouse are met while also minimizing the taxable assets upon a person’s death.
Testamentary Trusts for Children
Testamentary trusts for children are also one of the most common types of trusts people create. Like testamentary trusts for tax reasons, those created for children are also included as part of a will. Testamentary trusts for children are typically used to hold funds and property for children who do not have the capacity to make financial decisions for themselves. In most cases, this is due to the fact that the children named in the trust are still minors but it can also be due to a disability or other factor.
When a testamentary trust for children is established, a trustee is named. The trustee is responsible for distributing the property to the children, determining when the trust will eventually be terminated, and how any remaining funds will be distributed upon the termination of the trust.
Our Kennewick Trust Lawyers Will Protect Your Best Interests
Trusts are important estate planning documents that can protect you, your children, and your loved ones. They can also be very complicated, though. At Moulton Law Offices, P.S., our Kennewick trusts lawyer can draft a trust that addresses all of your needs and that protects the best interests of you and your family. Call us now at 1-509-328-2150, #9090 or fill out our online form to book an appointment and to learn more.