What Are the Most Common Types of Trusts for Estate Planning?

The support of an experienced lawyer can assist you with drafting a comprehensive estate plan. Your estate plan should align with your individual goals and strategies. Working directly with an experienced attorney can ease your concerns and stress over this process and make it simple to break it down into meaningful actionable steps.

There are several different kinds of trusts. The most important distinction is between revocable and irrevocable trusts. Revocable living trusts allow you to transfer assets outside of the probate process, and these trusts can be terminated or changed. These, therefore, provide less asset protection and have no tax advantages. Irrevocable living trusts also allow you to pass assets outside of the probate process, but do provide enhanced asset protection because they cannot be terminated or altered. This also means that assets properly placed inside an irrevocable trust by being retitled into them are beyond the reach of creditors and are not calculated as part of the total of your taxable estate.

This is one leading reason why many people turn to irrevocable trusts. Trusts give you more control over your assets after you pass away than wills. There are also many different kinds of specialized trusts available to you, such as a special needs trust for supporting a loved one with a disability, or a spendthrift trust, which can provide a greater level of control over how assets pass to those who may not be financially responsible to receive a lump sum.

Contact an experienced estate planning attorney in Virginia Beach to decide which kind of trust is the most appropriate for your needs.