When considering plans for the future, many assume drafting a will is enough. While this is a basic step in the estate planning process, Michigan adults can often benefit from expanding their plans beyond a will. Trusts may allow one to accomplish specific goals with assets and have more direct control over what happens with the estate after passing.
There are different types of trusts, and choosing the right one is critical. A living trust is one created for use during a person’s lifetime, while a testamentary trust is created for after the person passes, established per terms left in the last will and testament. A trust can be revocable, allowing the trustor to revoke it or change the terms at any point. An irrevocable trust is not alterable once established.
A special needs trusts allows one to provide for a loved one with a disability, while other trusts can protect assets until a beneficiary reaches a certain age. There are a variety of trust options, and the most appropriate one depends on long-term needs and financial objectives. A trust can be a useful addition to any estate plan, regardless of one’s income or the size of the estate.
A Michigan adult may benefit from seeking experienced legal counsel as he or she pursues a thoughtful and practical estate plan. With a trust and other estate planning tools, it will be possible to establish security and peace of mind for loved ones and beneficiaries. An assessment of the individual estate can reveal which options are most beneficial in the individual situation.
