When an individual passes away, the legal process of disbursing his or her property and assets to surviving loved ones is called “probate.” Probate is a notoriously lengthy and expensive process. It is not uncommon for the probate process to cost a sizeable chunk of the deceased’s remaining assets and property, leaving the surviving family with much less than the decedent intended. To avoid this, many people develop trusts, documents that provide legal authority over a person’s property to another party or trustee.
With a trust, the trustee holds the legal title to the trust maker’s property intended for specified beneficiaries. For example, a husband may name his wife as his trustee and his children as beneficiaries. In this example, the wife would have the responsibility of disbursing the husband’s property and assets to his children in accordance with the terms of the trust. This is just one possible example of the forms trusts can take. If you need assistance in preparing a trust, our attorneys at Williams Stone Carpenter Buczek, PC are happy to assist. We have convenient office locations throughout northern Virginia, including Stafford, Fredericksburg & Manassas.
Trusts are generally flexible documents that can provide a range of benefits to both the trust maker who develops a trust and his or her beneficiaries:
If you believe a trust would be the best way to ensure the passing on of your property to your loved ones, it’s important to understand the various types of trusts you can write and have an experienced estate attorney help you draft a legally sound trust.
In some cases, a person’s trust is created at the time of death in accordance with his or her will. The other option is to create a living trust, which is simply a trust made while the trust maker is still alive. The trust maker places his or her assets into a trust and names a trustee who will then hold legal title over everything in the trust. It is possible for an individual to be the trustee of his or her own living trust. The main benefit of creating a living trust is to spare your family from the expense of the probate process.
A living trust is also called a “revocable” trust as it is possible to amend it or change it during the trust maker’s lifetime up until his or her death. If an individual’s assets and property transfer into a revocable trust during the testator’s lifetime, those assets will not be subject to probate. Most revocable trusts will evolve into irrevocable trusts when the trust maker dies.
Unlike a revocable trust, an irrevocable trust does not allow changes, amendments, or any other alterations after it is made. Once created, no one, not even the trust maker, can remove property out of an irrevocable trust.
Aside from revocable and irrevocable trusts, trusts can take many different forms including:
Trusts exist in many different forms, each offering distinct advantages. If you wish to create a trust, it’s essential to determine the size of the trust and carefully consider your options when it comes to naming your trustee and your beneficiaries. Working with an experienced estate attorney can make the trust development process much easier. Schedule a consultation with us today to learn which type of trust would be the most beneficial for your situation.
If you or a loved one has questions regarding wills or trusts in Virginia, our law firm can help. We are nearby with office locations in Stafford, Fredericksburg & Manassas. Give us a call today at 540-657-0111.