Estate planning tools vary, and different people will use different documents and strategies to accomplish their goal. Perhaps you’ve heard about the concept of trusts and the purpose they can serve in your overall estate plan.
Recognizing various types of trusts will help you to have a conversation with your estate planning attorney in Virginia Beach. Trusts are managed or administered by someone known as a trustee. This individual has a fiduciary responsibility to abide by the terms of the trust itself. Beneficiaries are those individuals who are entitled to receive assets from the trust, and the grantor refers to the person who has established the trust. The two most important types of estate planning trusts for use in Virginia involve a distinction between irrevocable and revocable.
Revocability is a characteristic of a trust which references whether or not it can be changed. An irrevocable trust cannot be changed or cancelled after creation.
A revocable trust, however, allows for more flexibility and changes over the course of the grantor’s lifetime. Other types of trusts that may be established include:
- A charitable trust to benefit specific charities.
- A special needs trust to provide support for someone with mental or physical disabilities.
- An asset protection trust to help protect the beneficiaries’ assets against future creditors or claims.
- A testamentary trust which is set up by a last will and testament after someone’s death.
To further discuss the benefits associated with estate planning and using trusts in Virginia, set aside a time to speak with a Virginia Beach estate planning lawyer today. We’ll discuss your needs and goals to help you determine what belongs in your estate plan and how to maximize your planning for the future.