In Kalamazoo and across the United States, people have various options for drawing up different kinds of trust documents. Since each person has different requirements, it is best to consult with an experienced estate planning attorney. A grantor trust, which is also called a living trust, is the most common type of trust that has the power to avoid probate. In fact, one major reason for creating a trust is so that the beneficiaries do not need to go through probate.
A grantor trust enables the grantor or trustor to put assets into the trust and take assets back out of the trust. A revocable living trust means that the trustor has a legal right to revoke the trust. Parents who take care of a child with a disability may wish to set up a special needs trust. This type of trust is for a person who has a serious physical or mental impairment requiring assistance from the government.
An attorney specializing in estate planning can help an individual choose the right type of charitable trust. A person may wish to set up a charitable trust designed to provide monetary distributions to a particular charitable organization. An incentive trust is another type of trust stipulating that the beneficiary must perform specific actions before they receive any money. For instance, an incentive trust may state that the beneficiary must obtain a college degree in law before receiving a distribution.
A person who wants to establish a trust should contact a lawyer to discuss the various options. Creating a trust helps protect assets for families and beneficiaries. However, a trust needs to address all of the grantor’s concerns. Whether a person needs to create a living trust or a special needs trust, speaking with an estate planning attorney can provide professional guidance.