What is a Trust?

Trusts aren't just for the wealthy or for complicated estates. They can be helpful for "average" folks like you! What do trusts do? How can trusts be used?

A trust is an agreement between two parties: a settlor and a trustee. The trustee agrees to accept, manage and protect assets delivered by the settlor; to administer those assets according to the trust’s instructions; and to distribute the trust income and principal as the trust allows only for the benefit of the people identified in the trust.

 

Learn more about trusts and why they’re an important part of estate planning.

 

Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.

10 Reasons You Should Have a Trust

 

Trusts can be established for a number of reasons. Among them:

·      Protect beneficiaries from poor judgment and waste;

·      Avoid court-supervised probate of trust assets and keep them private;

·      Protect trust assets from the beneficiaries’ creditors;

·      Protect premarital assets from division between divorcing spouses;

·      Set aside funds to support the settlor when incapacitated;

·      Manage unique assets e.g. vacation homes, pets, recreational vehicles, etc;

·      Manage closely held business assets for planned business succession;

·      Hold life insurance policies and collect the tax-free proceeds to care for beneficiaries, fund closely held stock redemptions or purchases, and provide liquidity to the estate;

·      Provide structured income to a surviving spouse that protects trust assets for descendants if the spouse remarries; and

·      Reduce income taxes or shelter assets from estate and transfer taxes.

Learn more about why you should establish a trust here.

Get Started Today: Schedule Your Consultation

 

If you’re interested in learning more about estate planning, please contact an estate planning attorney in Ann Arbor at 734-665-4441.