Many people imagine that trust agreements are reserved for the financially elite. They totter about the issue unaware that they could change their lives by making a simple decision. With a trust agreement, estate plans can serve you throughout your lifetime.
It can put conditions around the distribution of your assets and reduce your taxes. What’s more, with the help of a Denver estate-planning attorney such as Miller & Steiert, P.C., you can protect your beneficiaries and shelter your assets from lawsuits, serving you even after death.
You can defend recipients such as those who suffer from mental health issues or gambling problems. As expected, the types of trust agreements will differ depending on what you want to do.
Here are the most common ones.
Revocable living trust
This agreement is valid during your lifetime serving to protect your assets. In most cases, people are their own trustees so that they keep control over anything moved to the trust. However, you can also name a successor to take over your assets after you pass on.
With this agreement, you can direct how the trustee manages your assets so that the beneficiaries will not suffer.
You use a testamentary trust for the inheritance your child gets and so it goes alongside the will. Typically, you instruct the administrator to give an heir specific assets in a trust. The trustee you appoint will manage the property to the benefit of the heir according to your directives.
This trust agreement is such that after transferring assets, you cannot remove them except the way the contract stipulates. You are no longer in control of your assets, the creditors are. Irrevocable trusts help to avoid taxes in that they reduce the size of your estate.
There are other trust agreements like ones for the protection of the special needs children. The idea is to rely on a legal service to advise you on what you want. Be sure to consider how each agreement benefits both you and your heirs before settling.