A trust is a contract between the Trustor, the maker of the trust, and the Trustee, the one who oversees the trust. These two can be the same person. The trustor and the trustee are usually the same in a family trust. This is a contract that tells you how a trustor’s assets should be distributed after he is deceased and often describes how they should be used during the trustor’s life.
What Benefits Does A Trust Offer? Are There Any Disadvantages?
The primary advantage of having a trust is to avoid probate. Many people form trusts just for that reason. Also, another very important thing about a trust is that you can postpone gifts or bequests to beneficiaries for up to two generations. This is something you cannot do with a will. Everything given by a will has to be given immediately after the death of the decedent.
What Are The Most Common Types Of Trusts?
The four most common trusts are a revocable family trust, which is the trust that most people do. You can also have an irrevocable family trust, which cannot be revoked at any time. You can have an asset protection trust, which is an irrevocable trust that has other special terms set up in it to avoid creditors. The important thing about that is that if you know of a possible lawsuit from a creditor and form an asset protection trust after that, the courts can undo that trust. Finally, there is a special needs trust and that is a special trust set up by statute for someone who is handicapped in some way.
What Components Make Up An Effective Trust?
The three primary people involved in a trust are the trustor, the trustee, and the beneficiary. Beneficiaries are the ones who receive assets either during the life of the trustor or after the trustor’s death. Of course, an important part of the trust is to have all of the legal language that makes it a legal document and protects it from being attacked by outsiders.
Can I Have More Than One Trust?
You can have more than one trust. Usually, there is no reason to do so and if you have two different trusts, they should encompass different assets. Sometimes, people will put a house in a trust and then put other property in a separate trust or create a family trust and also a special needs trust for a disabled child.
What Would You Say To Someone Who Is Afraid Of Losing Control Over Their Assets By Putting Them In A Trust?
It is not as important to own an asset as it is to control it and if you create a trust and are that trust’s trustee then you will absolutely control every asset that is in that trust. That is the most important thing. We will set up that trust so that you have absolute control. You can direct your trust to sell an asset or to buy other assets or to give gifts to people or to charity, and so on. By having control, you have all of the rights as owner except owning the assets in your personal name. This is what lets a trust avoid probate.
For more information on Trusts In The State Of South Carolina, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (864) 271-7940 today.