When it comes to estate planning, Attorney Feniger and his team stress to each client the importance of establishing a trust. As legal protection for your assets, a trust also ensures your wishes are carried out upon incapability or death.
Here, we delve a bit deeper into the two most common types of trusts and why you may choose one over the other.
Sometimes referred to as a ‘living trust,’ a revocable trust is a legal document that places the grantor’s assets under protection while alive and distributes them to the beneficiaries upon death. This legal document often helps simplify life’s transitions and keeps families out of probate court.
However, because life always throws curveballs, sometimes change is needed. With a revocable trust, the grantor may alter the contents during their lifetime. Furthermore, it’s imperative to note that anyone with assets should consider contacting an estate planning attorney to discuss the shelters of creating a living trust.
As implied, an irrevocable trust may not be revoked in any part. Only under the permission of the beneficiary may this type of trust be modified. Further, once the trust is officialized, the grantor’s rights are removed as the asset owner. Instead, the estate now owns the assets.
With such strict restrictions, you may wonder why anyone would choose to opt for an irrevocable trust. The primary reason is simple – tax considerations. Removing assets from personal liability may prove beneficial for some. For most, a revocable living trust is a more common choice.
Understanding which trust is best for your situation and goals can be overwhelming and tricky. To ensure your estate is situated in the best possible manner now and upon your passing, contact the number one estate planning attorney in Manchester, Feniger & Uliasz.