Estate planning is something that many people may feel reluctant to talk about. Indeed, the subject of planning for our future, and beyond, makes many people uncomfortable, as we are forced to come to term with our own mortality. However, taking care of this matter usually is a comfort to those who do it because it allows them to feel confident that issues will be handled the way they would have wanted them to be handled after they are gone. Many people do not realize that a portion of the estate planning process includes handling matters that still affect them during their own lifetime and that they themselves can benefit along with their family members and eventual heirs. In particular, trusts are a tool in the estate planning process that can benefit you as well as your survivors.
What Is A Trust?
Trusts come in many different forms and serve many different purposes. Choosing which type of trust works best for you depends upon your individual situation and what you are trying to accomplish. Trusts can be either living trusts or testamentary trusts; a living trust is one that becomes effective immediately after it is created, and a testamentary trust is one that does not become effective until after your death. A testamentary trust is sometimes created within a will – another tool in the estate planning toolbox.
Are Take-Backs Allowed?
Once a trust is created, one factor determines whether you can change your mind – and change your trust. With a revocable trust, you are still the owner and in control of the property included in the trust. You can change anything in it – revoke it, hence the name – including who will receive the property, who will handle the property, and the terms of how the trust itself will operate. An irrevocable trust, on the other hand, gives complete control over and ownership of the property included in the trust to those you name as the trustees; with this type of trust, you are no longer able to change anything, as the property is no longer yours.
Which Is Right For Me?
Decisions such as these are not always as easy as they may seem at first thought and what is best for you depends upon a variety of factors including, perhaps most importantly, your tax situation. An experienced estate planning attorney can help you to understand how each different type of trust will impact you – and your beneficiaries – with respect to taxes and help you to choose the right solution to accomplish your estate planning goals.
Contact Cloud Willis & Ellis, LLC For Your Estate Planning Needs
When you want to determine the best way to handle your estate planning matters, you want the best possible advice to make these important decisions. The legal professionals at Cloud Willis & Ellis, LLC in Birmingham and Mobile have the experience to help you with estate planning it the way that makes the most sense for you. Our estate planning attorneys will help you to assess what types of estate planning tools are best for your individual situation and help you to feel confident in the choices you make. We work hard to ensure your satisfaction and allow you to rest assure that everything is in order. Contact the office of Cloud Willis & Ellis, LLC now to get started.