New Haven Trusts Lawyer
Every trust must include a trust creator, often called the settlor or donor; a trustee; and beneficiaries. Permissible beneficiaries of a New Haven trust can include individuals, pets or charitable organizations.
The terms of the trust will direct how the trustee manages and distributes trust assets to the beneficiaries. Trusts allow many individuals and family to structure and control the distribution of their assets.
A seasoned New Haven trusts lawyer could listen to how you want your trust prepared and generate a document that works for you. Work with a skilled trusts and estates attorney that could ensure that your assets are protected.
Why Have a Trust?
Trusts are rarely cookie cutter documents. They can be prepared or modified to suit different estate planning objectives, and individuals at all asset levels can derive benefits from trust planning.
Trusts can be used for the purposes of:
- Estate tax planning
- Managing assets for disabled or incapacitated persons
- Holding assets for minors
- Avoiding the probate process
- Making charitable gifts
- Structuring an inheritance
- Creditor protection
Understanding Revocable and Irrevocable Trusts
In New Haven, trusts fall into two broad categories: revocable or irrevocable.
Revocable trusts can be changed or terminated at any time prior to the death of the donor. Many clients prefer revocable trusts due to the planning flexibility they provide since they can be easily modified as family dynamics and financial situations change through the years. Revocable trusts are also referred to as living trusts because they are usually prepared by the donor during their lifetime.
Revocable trusts are most often set up so that the donor is also the initial beneficiary and trustee. Since the donor is also the trustee and beneficiary, they have full control over the trust assets so that there is essentially no different than if the donor owned the trust assets individually. However, the advantage to titling assets in a trust is that it provides a mechanism to manage assets during the donor’s lifetime in the event they become unable to manage their own affairs after an accident or the onset of a cognitive ailment.
Irrevocable trusts cannot be revoked once they are created. These types of trusts are often used as an estate tax planning strategy to decrease the donor’s taxable estate. A New Haven trusts lawyer could help someone create and formalize either kind of trust.
Avoiding the Probate Process
One of the biggest appeals to trust planning is the ability to avoid the probate process. By transferring assets into a trust during a person’s lifetime, that person can eliminate the need for their estate to pass through the court probate process.
Unlike a will, which is subject to the jurisdiction or the probate court, trusts fall outside of probate. Filing documents with the probate court involves filing fees, and it often takes several months or years to conclude the process and distribute assets out of an estate. Furthermore, the costs of administering an estate generally exceed the costs of trust administration.
As a result, many individuals opt to implement estate plans and utilize a trust rather than a will to dispose of assets. Along with a trust, however, it is still advisable for an individual to create a will as well, so that assets can be transferred into their trust in the event any are accidentally left out.
Calling a New Haven Trusts Attorney
To speak with a New Haven trusts lawyer about creating a trust, call today to schedule a consultation. They are available to answer any questions you may have about different types of trusts. A qualified trusts attorney could work diligently to protect your interests, and assure that your loved ones are protected.