Macomb County Trusts

Trusts

A trust is a critical estate planning tool that can help you keep assets out of probate, ensure that your wishes are upheld when the time comes, and provide you with the peace of mind that comes from knowing you’ve taken the steps necessary to continue providing for your loved ones. An experienced Michigan estate planning attorney can help you address your estate planning needs head-on, which may include the establishment of a trust.

Revocable Living Trusts

Revocable living trusts are established during the lifetime of those who set them up, and those who establish them benefit from these financial tools until they become incapacitated or pass away. With a revocable living trust, you can appoint a successor trustee whom you trust to manage the assets within upon your incapacitation or death.

These trusts are popular because they are flexible and allow those who create them to pass their assets to their chosen recipients while bypassing the complicated and time-consuming probate process. While you can include all your assets in your revocable living trust, you’ll still need a will to address any assets you acquire after your trust’s last update, your debts and administrative expenses, and the matter of your minor children’s guardianship – as applicable.

Irrevocable Trusts

An irrevocable trust has far less flexibility, but it can be a useful estate planning tool in specific situations. With an irrevocable trust, you surrender all ownership rights to the assets you include and to the trust itself. Such trusts can be terminated or modified only with the permission of the beneficiary.

The unique instances when an irrevocable trust can be extremely beneficial include all the following:

• If your estate is very large, an irrevocable trust can greatly decrease the tax obligation that your heirs experience. The assets in an irrevocable trust are not taxable.
• The assets held in an irrevocable trust are protected from both legal judgments and creditors. This can be especially beneficial if you are vulnerable to lawsuits, such as if you have a high-profile career that attracts attention.
• Including assets in an irrevocable trust helps to ensure that they’re not used against you when it comes to government benefits like Supplemental Security Income and Medicare. This can play an important role in preserving your assets for your heirs.

Downsides to consider include:

• Any income that an irrevocable trust generates is taxed separately at what is generally a higher rate.
• Irrevocable trusts are separate legal entities that must file annual tax returns, which can generate expenses related to complex preparation and filling.

Look to an Experienced Michigan Estate Planning Attorney for the Help You Require

Trusts are an important but complex component of estate planning, and the practiced Michigan estate planning attorneys at Aiello & Associates have the legal skill, experience, and drive to help you better understand your options and to help provide you with the peace of mind that comes from knowing you’ve taken the steps necessary to continue providing for your loved ones. Reach out for more information by contacting us today.