During estate planning, you can set up trusts, which can be created by a will when you pass, or during your lifetime. These legal documents serve as vehicles for any assets that you want to distribute to your loved ones (the beneficiaries) without the court’s interference. Make sure you’re aware of all your options if you’re consulting an estate planning attorney to set up a trust.

What Type of Trusts Can an Estate Planning Attorney Create?

Revocable Trusts

Also called “living trusts,” these are drafted while you are alive, and you can change or revoke them whenever you’d like. You can use this document to transfer a property title to a beneficiary without them having to go through probate, which would be required with only a will.

If you want to remove mention of the property at any time, such as after a divorce or the beneficiary’s death, you can.

Irrevocable Trusts

If you choose to establish an irrevocable trust to hold your assets, you will be barred from modifying or revoking it in any way. Once this trust is created, it’s set in stone.

Many people choose this option because it helps avoid some taxation.

Charitable Trust

If you’d like to give some of your estate to a charity after you pass, you can set up this type of trust during the estate planning process.

Since charitable donations can’t be taxed up to a certain value, this is another strategy for lowering estate or gift taxes. Keep in mind that gifts may need to be made more than three years before a death to avoid taxes. 

Asset Protection Trust

You might want to create a trust to prevent creditors from seizing your assets after your death. For example, if you owe money, the courts might pay lenders back by offering them pieces of your estate. This is most common for creditors outside of the U.S.

While these trusts are usually irrevocable for a certain number of years, they ensure that your assets are protected from creditors.

If you’d like to set up a trust to benefit your estate, your loved ones, or a charitable organization, turn to Louis C. Noto of Rochester, NY. For over 48 years, this estate planning attorney has been helping area clients prepare for the future. To learn more about his practice areas, visit his website. You can also call (585) 232-1815 to set up an appointment today.