Trust Your Trust

Trusts can be….confusing and complicated. So, what exactly is a trust? 

The simple answer - it is a legal arrangement where one party (a trustee) holds assets on behalf of another party (beneficiary). The creator (grantor) outlines the terms and conditions. 

Trusts come in many forms:

• Revocable Trusts

A revocable trust has also been called a living trust. With this trust, you are usually the initial trustee and can manage any assets that you put into the trust during your lifetime and then transferred to a successor who will assume responsibility for managing the assets according to your instructions. 

• Irrevocable Trusts

Unlike with a revocable trust, with an irrevocable trust you can’t name yourself as the trustee and you give up the control of the assets that you put into it. 

• Testamentary Trusts

These trusts are usually created in a will and become active after the probate process. These kinds of trusts are most commonly used when you want to leave assets to someone who can’t manage it independently. 

• Charitable Remainder Trusts

This trust allows you to set up a trust to provide a donation to a charitable organization and they can receive income from that trust for a designated period of time. 

• Special Needs Trusts

A special needs trust is set up to provide for a disabled loved one without costing them to lose their government assistance. 

Are some of the most common trusts out there.

Trusts often allow you to skip the probate process, which can be a lengthy and expensive process. Each type of trust has it’s pros and cons. Make sure you work with a legal advisor to help decide which or if a trust is best for you. 

Plan for your future and eventual exit before you have to, it’s never too early to start thinking about estate planning. 

Irvine Legal can help. Call 385-333-7966 to schedule your free 15 minute consultation.