What is a trust?

A trust is a legal arrangement in which a person or entity (the trustee) holds property for the benefit of another person or entity (the beneficiary). 

You might have heard that trusts are only for the rich and famous. But that’s not true! Trusts can help protect your assets from creditors, divorcing spouses, and predators even if you don’t have millions of dollars to throw around. In fact, trusts are useful in many different circumstances:

• To protect children from bad decisions: A trustee can be given control over how kids spend money on things like cars or clothing—but still allow them to live independently without being completely cut off from all funds (like parents would do by giving them an allowance).
• To prevent family squabbles over inheritances: Deciding whether young children should get their inheritance early is difficult enough without adding siblings into the mix who might want their share before it’s time. Parents often set up trusts so that each child gets his/her inheritance at a certain age (say 25) or after achieving some milestone (like graduating college).

A trust can be established during an individual’s lifetime or after his or her death.

They can be used to avoid probate, provide for future generations and reduce estate taxes.

If you are considering establishing a trust, contact our firm for more information about the different types of trusts and their benefits.

Revocable trusts are made during an individual’s lifetime and can be changed at any time.

Revocable trusts are also known as inter vivos trusts and are often used to avoid probate. The trustor (the person creating the trust) can change or revoke a revocable trust once it’s been created. You might create a trust during your lifetime, but you don’t have to wait until you die before it goes into effect. You can write one now and give it the power to manage assets when you’re alive so that they can be passed on when you pass away.

This type of arrangement is often used by people who have concerns about their mental capacity in old age, as well as those who want some control over how their assets are distributed after death. Revocable trusts allow concerned parties more control over how assets will be allocated than simply leaving everything in joint ownership with no set order for distribution of assets upon death

Irrevocable trusts cannot be changed after they are created.

An irrevocable trust is a legal arrangement in which property is transferred by a person to another person or entity. That person then holds and manages that property for the benefit of others. The owner of the property gives up control over it, so they no longer have power to change it or take it back.

Irrevocable trusts are sometimes used to protect assets from creditors after someone dies. Particularly when someone has substantial wealth and many different kinds of assets. When an irrevocable trust is created, a trustee can be named to manage the assets, who will then use them for the benefit of beneficiaries designated by the creator (the original owner).

The creator may choose not to give away all their assets before they die. Instead they may leave some amount behind as part of their estate. However, this does not mean that everything else must also be part of that inheritance.

There are many different types of trusts. To find your best option and get a trust in place, contact an experienced attorney.