Different types of Trusts have different purposes, such as charitable trusts, real estate trusts, generation-skipping trusts and special needs trusts. Our attorneys have experience preparing all types of Trusts.
For example, a Living Trust is often used in lieu of a will. If you think of a Will as something that directs where and to whom certain assets will go after death, it is helpful to think of a Living Trust as a bucket which a Trustor creates. The Trust holds things within it, such as bank accounts, titles to cars and real property, stocks and bonds, and can even be named as a beneficiary of life insurance proceeds or a 401(k) upon the Trustor’s death. Upon the Trustor’s death or incapacity, the Trust is then managed by a successor trustee (someone designated by the original trustor) for the benefit of whomever the Trustor indicated when he or she created the Trust.
Trusts have many benefits, such as avoiding probate, reducing tax exposure, preventing public disclosure of ownership, providing for a disabled family member during their lifetime, and anticipating the Trustor’s wishes in the event of his or her disability or incapacity.
Trust management can be very involved and requires diligence. Because Trusts often involve real property, bank accounts and other assets, Successor Trustees can run into trouble when they fail to manage the trust assets properly and someone files an action in Probate Court. An experienced attorney is invaluable when it comes to administering a Trust.