Rock Island Trusts Attorney
At Greenwood Law, we are committed to helping our clients achieve their estate planning goals. We understand that every client is unique, and we take the time to get to know you and your family so that we can create a plan that is tailored to your specific needs. Our Rock Island trusts lawyer has extensive experience and can help you understand the benefits of trusts in estate planning. We can also help you understand the differences between a will and a trust and determine which option is right for you.
What Is a Trust?
A trust is a legal arrangement that allows a third party, known as a trustee, to hold assets on behalf of a beneficiary or beneficiaries. The person who creates the trust is known as the grantor. Trusts can be used to hold a wide range of assets, including real estate, bank accounts, investment accounts, and personal property. The trustee is responsible for managing the assets in the trust and distributing them to the beneficiaries according to the terms of the trust.
There are several different types of trusts, including:
- Revocable living trusts: These trusts can be changed or revoked by the grantor at any time. They are often used to avoid probate and can be a good option for people who own real estate in multiple states.
- Irrevocable trusts: These trusts cannot be changed or revoked by the grantor. They are often used to protect assets from creditors and reduce estate taxes.
- Special needs trusts: These trusts are used to provide for a person with special needs without disqualifying them from government benefits.
- Charitable trusts: These trusts are used to benefit a charity or charities.
Trusts can be a good option for many people, but they are not right for everyone. Our Rock Island trusts attorney can help you understand the benefits of trusts in estate planning and determine whether a trust is right for you.
Benefits of Trusts in Estate Planning
There are several benefits of trusts in estate planning. One of the main benefits is that trusts can be used to avoid probate. Probate is the legal process of administering a person's estate after they die. It can be time-consuming and expensive, and the details of the estate become a matter of public record. Assets held in a trust do not go through probate, which means that they can be distributed to the beneficiaries more quickly and with less expense. Trusts can also be used to reduce estate taxes and protect assets from creditors.
Trusts vs. Wills
Trusts and wills are both estate planning tools that can be used to transfer assets to beneficiaries after death. However, there are several key differences between the two.
Some of the main differences between trusts and wills include:
- Probate: Assets held in a trust do not go through probate, while assets that are transferred by a will do. Probate can be time-consuming and expensive, and the details of the estate become a matter of public record. Avoiding probate is one of the main benefits of trusts in estate planning.
- Privacy: The details of a will become a matter of public record, while the details of a trust remain private.
- Control: A trust allows the grantor to maintain control over their assets even after they die. For example, the grantor can specify that the assets in the trust be used to provide for a minor child or a child with special needs. A will only goes into effect after the grantor dies and does not allow for this level of control.
- Flexibility: A trust can be changed or revoked by the grantor at any time, while a will cannot be changed after it is signed. This means that a trust can be a good option for people who are not sure what they want to do with their assets or who want to make changes to their estate plan in the future.
Our Rock Island trusts attorney can help you understand the differences between trusts and wills and determine which option is right for you.