What Kind of Trust is Right for Me?

Everyone wants to ensure that their loved ones are taken care of. If we can, we even like to ensure they’ll be secure after we’re gone. One way people can ensure that those who matter most to them will have what they need for years to come is through a trust.

A trust is a legal arrangement that allows you to protect assets from going through the probate process or being seized by creditors. While many people have heard of trusts, not everyone realizes there are multiple types of trusts with different advantages. Two of the main types of trusts are irrevocable trusts and revocable living trusts.

What is a Trust?

When you establish a trust, it becomes a legal entity. You can then transfer ownership of money, real estate, and other assets into the trust. When you do this, these assets become the legal property of the trust and are no longer considered your possessions. The trust is managed by an individual called a trustee. At the appropriate time, the trustee will follow the instructions you provided and distribute the assets according to your wishes. This is an effective strategy for avoiding certain money and property from being tied up in legal red tape.

Although many people are familiar with the concept of trusts, not everyone knows that there are different types of trusts. Two of the most common and basic types are irrevocable trusts and revocable living trusts. While an irrevocable living trust is the most “secure,” it also has certain disadvantages. This is why many people opt for a revocable living trust. An experienced estate attorney like J. Anthony Bradley at Bradley Law Firm, PLLC can review the different types of trusts available to you and help determine what would be the best option.

What is a Revocable Living Trust?

A revocable living trust is a type of trust that allows you to make modifications to it as you see fit. Many people opt for irrevocable trusts because of the extra security measures they offer. For example, an irrevocable trust offers many benefits, including but not necessarily limited to:

• Asset Protection
• Reducing Tax Burden
• Reducing Estate Value
• Medicaid Planning

Despite these benefits, irrevocable trusts are not ideal for everyone. Recent changes by the IRS to laws regarding irrevocable trusts have altered some previous benefits. Additionally, some individuals benefit from the security of being able to make changes to a trust once it has been established. This is where revocable living trusts come in.

Revocable living trusts allow you to make changes to the trust at your discretion, including adding or removing assets, changing the trustee, and more. Revocable living trusts are beneficial for individuals who anticipate a great deal of change in their lives. They are also helpful for those who want the extra security of being able to make changes at a later date.

While a revocable living trust may not provide all of the tax or inheritance benefits of an irrevocable trust, it may be right for individuals who aren’t worried about estate taxes, don’t have large estates or high-value assets, or who think they may need to make changes at a later date. An experienced estate attorney can help you determine if a revocable living trust is right for you.

What Should I Do if I Think a Revocable Living Trust is Right for Me?

Trusts are not a one-size-fits-all proposition. One of the benefits of consulting with an estate planning attorney is that they can review your options and help determine what type of trust is right for you, your family, and your financial situation. Many people benefit from the sense of security a revocable living trust can provide. That’s why J. Anthony Bradley and his team at Bradley Law, PLLC, are here to help. J. Anthony Bradley places a high value on helping people secure their futures.

One of the most effective ways to do that is through a trust. During your consultation, he can review your options and determine if a revocable or irrevocable trust is right for you. Then, he and his dedicated team can help you establish your trust in a way that best serves you and your loved ones’ needs. Don’t hesitate. You can secure your family’s future today. If you or a loved one is considering establishing a trust in Germantown, Shelby County, or the surrounding Tennessee area, don’t hesitate to contact J. Anthony Bradley today at 901-441-8215