Death is not a subject that most Michigan residents want to discuss. Of course, it’s unavoidable, so it only makes sense to prepare ahead of time. A proper estate plan can ensure that a person’s assets are passed onto their intended beneficiaries. Trusts are great estate planning tools that have many benefits.
What is a trust?
In its most basic form, a trust is a legal contract between a grantor and one or more trustees. The trust is used to hold specified property and assets. The trust typically spells out a person’s how and when the trust assets will be transferred to the beneficiaries. One major benefit to trusts is that they can bypass the probate process since the contents technically belong to the trust and not the grantor.
Revocable versus irrevocable
There are two basic types of trusts: a revocable trust and an irrevocable trust. A revocable trust, also called a revocable living trust or a living trust, can be changed or amended by the trust owner at any time while he or she is alive. Conversely, an irrevocable trust cannot be changed and the terms are set in stone as soon as the trust is signed.
Help with estate planning
Trusts are just one of the many tools families can use to secure their property and assets, and pass these things down to their loved ones. Those in Michigan who need help or have questions about trusts or any aspect of estate planning could benefit by speaking with a knowledgeable legal professional. An attorney experienced in estate planning can help families create a plan that suits their needs.
