Trust

Flint, Michigan Trust Lawyer

Providing Clients With the Quality Legal Services They Need to Plan for the Future

Often, when individuals hear the term trust in connection with estate planning services, they think that creating a trust is only for the very wealthy or older adults. Creating a trust is a reliable legal strategy for protecting your hard-earned assets and ensuring your family has the financial resources they need after your passing.

Clint W. Perryman PC is a law firm in Flint, MI, dedicated to providing clients with estate planning services. If you are interested in creating a trust or have other questions, please contact our law firm today to schedule a consultation, and we will assess your legal options.

What Makes a Trust a Smart Estate Planning Tool?

Trusts provide a flexible solution that individuals, families, and business owners can utilize to safeguard their assets both now and in the years to come. Once you place assets in a trust, they are no longer considered to be under your control but are instead the property of the trust.

Creating a trust offers the testator (the person who created the trust) a wide range of benefits depending on their needs, including:

  • Avoids time-consuming and costly probate
  • Provides a higher level of privacy that wills do not as they become a matter of public record after the probate has been completed
  • Structured payouts to beneficiaries who may need help managing their finances
  • Asset protection that can help you safeguard your financial interests from creditors, or if you should need to enter a nursing home
  • Helps to prevent conservatorship or court-appointed guardianship if you are no longer able to direct your medical care or manage your legal affairs
  • Potential to help minimize estate taxes for heirs and beneficiaries

What are the Most Common Types of Trusts?

Michigan law permits individuals to establish trusts that align with their financial priorities and safeguard their estate to ensure their assets are passed on to their designated heirs and beneficiaries. Due to the legal complexities involved with creating a trust, it is in your best interest to allow a knowledgeable attorney to assist you with your estate planning goals to determine which option is best for you.

Some of the most common types of trusts include:

  • Revocable Living Trust: A trust that can be modified or revoked by the testator, which offers flexibility and helps families avoid probate court
  • Irrevocable Trusts: A trust that cannot be modified once the grantor has established it and is often used to shield assets from creditors or long-term care facilities
  • Testamentary Trusts: A trust created by a will that becomes valid after the testator’s death and is often used to provide ongoing financial resources for minors or other beneficiaries
  • Special Needs Trusts: A trust used to provide financial resources to loved ones with disabilities that does not interfere with their ability to collect government benefits
  • Charitable Trusts: A trust that allows individuals to support charitable causes, and depending on the circumstances, offers reduced tax liability

Identifying the best trust for your needs can be a challenging decision, and it is best handled with the assistance of a knowledgeable attorney who can help you make informed decisions.

What Factors Should I Consider Before Choosing a Trustee?

A trustee is an individual who has a fiduciary duty to properly manage and distribute assets held within a trust for the benefit of the designated parties. Under Michigan law, the trustee is required to act in the best interests of the beneficiaries and administer the assets according to the terms of the trust.

Before naming a trustee to administer the trust, there are several factors that you should consider before making your decision. One of the most significant factors to consider is the person’s trustworthiness and whether they will act in the best interest of beneficiaries. You should also carefully assess whether the person you are considering is willing to take on the ongoing responsibilities of trust administration.

Additionally, anyone you are considering should possess strong organizational skills, financial literacy, and be prepared to follow all applicable laws. If you are considering a family member, you must choose someone who can act impartially and avoid potential conflicts.

Due to the detailed legal responsibilities of managing a trust, you may need a trust and estate attorney who already possesses the necessary skills to manage your assets effectively.

Clint W. Perryman PC is a law firm with extensive experience in providing <a href=”https://attorneyperryman.