Estate planning is much more than creating a will. Depending on your assets and debts, it may involve some pretty complicated planning. Fortunately, there are estate planning lawyers who can assist in getting your estate in shape. Caring for your family when you die is a top priority. One method suggested by attorneys is through the use of trust accounts. These are financial strongholds that can directly pass to a trustee when you die. Discover some of the most common trusts you can use in your estate.
An Irrevocable Trust
If you have specific property or assets that you know you want to leave to someone, an irrevocable trust may be the perfect vehicle in which to deposit it. In this type of trust, the property can be deposited one time – upon creation of the account. You, the grantor, then designate the trust as the possessor of the property you deposit. You also take this time to name a trustee or recipient who will inherit the trust and its contents upon your passing. After your death, the trustee or trustees own the property left inside the trust. They can choose to retain the trust or cash it out and take direct possession of the property within it. Once an irrevocable trust is established, it cannot be changed.
A Living Trust
Your attorney may direct you to plan for your advanced life directives by establishing a living trust. This is an account that can hold money to be used if you need advanced medical care towards the end of your life. The trust can be opened by the person designated to handle your financial affairs while you are alive. This representative can request money from the trust to pay for your healthcare. If there is money left in the trust after you die, the trustee inherits what is left.
A Revocable Trust
A revocable trust works much like the other trusts here, except you can make changes to it while you are still alive. You can put property and assets into the trust at any time and remove them. You can terminate the trust as well. This type of account can help reduce your taxes by reducing the total amount of assets in your possession, but it also allows you to get those assets back should you need them before you die.
Establishing the most effective trust accounts is a job for a lawyer, like an estate planning lawyer in Melbourne, FL from the Law Offices of Arcadier, Biggie, & Wood. Get with one today, and get started on planning for your family’s future.